SRINAGAR: The Kashmir Chamber of Commerce & Industry (KCCI) made a comprehensive presentation to the Parliamentary Standing Committee on Industry today, addressing critical issues impacting Jammu & Kashmir’s economy. The 31-member committee, headed by Mr Tiruchi Shiva, gathered in Srinagar to discuss key matters concerning the MSME sector, employment, handicrafts, and the functioning of government and banking institutions in the region.
The KCCI delegation, which included Senior Vice President Ashiq Hussain Shangloo, Secretary General Faiz Ahmad Bakshi, Past President Mushtaq Ahmad Wani, Tauseef Ahmad Bhat, and Tariq Ahmad Dar, warmly welcomed the committee members. The chamber highlighted its century-long commitment to fostering economic development in Jammu & Kashmir and submitted a memorandum detailing urgent concerns.
One of the major points raised during the presentation was the proposed increase in Goods and Services Tax (GST) on traditional Kashmiri shawls. The KCCI voiced strong opposition to the hike, which would raise the GST from 12 per cent to 28 per cent on shawls priced at Rs 10,000 or more. The chamber also opposed the increase in GST on shawls priced below Rs 10,000, calling for a reduction in the GST rate to 5 per cent. The KCCI pointed out that artisan wages account for 80 per cent of the cost of producing these shawls, and the proposed GST hike would severely impact the livelihoods of artisans reliant on labour-intensive processes. The Parliamentary Committee members echoed these concerns and committed to conveying the feedback to relevant authorities.
In addition to the GST issue, the KCCI presented several other critical concerns to the committee. The chamber stressed that the region has the highest unemployment rate in the country, with a significant reliance on arts, crafts, and cottage industries. It advocated for enhanced support for artisans, particularly women, through improved verification processes by the Khadi and Village Industries Commission (KVIC). The KCCI also raised concerns about the registration process under the National Capital Investment Support Scheme (NCSS), calling for adherence to the “FIRST IN FIRST OUT” (FIFO) protocol. The chamber advocated for an increase in NCSS funding from Rs 28,400 crores to Rs 75,000 crores, with 25 per cent of funds reserved for local entrepreneurs.
The KCCI also highlighted the need for industrial estates to drive expansion and proposed extending the operational timeline for new units from three to five years, expediting NOC and clearance processes, and revising the flawed land allotment ranking policy. The chamber expressed concern over the confusion caused by the existence of three overlapping industrial policies, recommending the creation of a single, comprehensive framework to ease business operations.
The chamber called for mandatory procurement from local MSMEs under the composite contract system, ensuring government contracts directly benefit local businesses. Recognising the skills gap in modern industries, the KCCI proposed the establishment of Skill Development Centers within industrial estates to address this issue and ensure the workforce is prepared for the demands of contemporary businesses.
With the number of struggling industrial units on the rise, the KCCI suggested a survey to identify sick units and the creation of a revival corpus to support their rehabilitation. The chamber also called for a special one-time settlement scheme (OTS) for MSMEs. Limited access to capital remains a major barrier for MSMEs, and the KCCI urged banks to increase lending, particularly under the Credit Guarantee Scheme, and accept primary mortgages as collateral.
The KCCI stressed the need for policies tailored to specific industries, such as floriculture, organic farming, and IT, to foster targeted growth and support. The chamber also urged the government to identify and reserve products for local manufacturers, requesting a 10-year procurement preference for local industries. It proposed the creation of activity-based estates, such as cold chain logistics for the horticulture industry, to support specialized economic activities.
Finally, the KCCI called for improved IT infrastructure, regulatory streamlining, investment incentives, and enhanced cybersecurity measures to boost the IT sector’s growth. The chamber articulated a clear vision for leveraging Jammu & Kashmir’s unique resources to build an equitable and prosperous industrial environment. It emphasized the importance of balanced and supportive policies that empower local artisans, stimulate economic stability, and foster long-term growth in the region. The committee members listened attentively to the suggestions and committed to conveying the KCCI’s concerns and recommendations to the relevant authorities.
