SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) has welcomed the budget presented by Chief Minister Omar Abdullah, hailing its strong emphasis on industrial expansion and targeted support for established and emerging sectors. However, the chamber has stressed the need for swift and effective implementation of key initiatives to ensure tangible benefits for local industries.
In a meeting chaired by Shahid Kamili, FCIK commended the government’s commitment to IT, renewable energy, and biotechnology, describing the proposed reforms as transformative for Jammu and Kashmir’s industrial landscape. The chamber particularly lauded the planned review of industrial policies, expressing hope that it would address the pressing concerns of existing enterprises and facilitate their revival. Kamili noted that allocating funds under the Rs 28,400 crore New Central Sector Scheme (NCSS), coupled with policies ensuring equal opportunities, could significantly bolster the region’s 40,000 industrial units, fostering employment and investment.
FCIK also welcomed the government’s announcement of a new public procurement policy aimed at offering price preference to local manufacturers. However, it flagged concerns over the GeM platform’s failure to distinguish between manufacturing and service-based MSMEs, which has disadvantaged local industries in recent years. While the chamber appreciated the introduction of worker housing within industrial estates, it deemed the Rs 100 crore allocation for estate upgrades inadequate, given the substantial infrastructural requirements.
The proposed Industrial Advisory Committee was hailed as a vital mechanism for fostering coordination between departments and addressing policy loopholes. At the same time, FCIK urged a fair distribution of SGST reimbursement and turnover incentives across both provinces, ensuring equitable support for businesses in challenging conditions. The chamber also pressed for an extension of SGST reimbursement to MSMEs engaged in both intra-state and inter-state supplies.
While acknowledging the government’s recognition of startup funding challenges, FCIK called for these initiatives to be extended to young entrepreneurs who have recently launched ventures. It also stressed the importance of implementing all collateral-free credit schemes alongside the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to enhance credit accessibility for MSMEs.
FCIK supported the government’s focus on technology-driven regulatory frameworks for sustainable mining but cautioned against over-regulation, calling for educational initiatives to balance environmental concerns with industry growth. The chamber also endorsed the government’s commitment to skill development but underscored the need to prioritise job sustainability and private-sector collaboration.
Despite welcoming several measures, FCIK expressed disappointment over the omission of key industry demands, including amnesty schemes for power dues, the pre-GST VAT regime, and one-time settlement options. The chamber urged the government to address these issues during the budget session.
While praising initiatives in agriculture, horticulture, tourism, social welfare, education, and health, FCIK emphasised that the success of the budget hinges on effective execution. “The promises made must translate into action, particularly in streamlining policies, improving infrastructure, empowering local businesses, and ensuring fiscal sustainability,” Kamili said, reaffirming the chamber’s willingness to collaborate with the government in achieving these goals.
