As the trade fraternity is up in arms against the government over the implementation of the Goods and Services Tax (GST) in the state, the manufacturing sector too is not in a happy state of mind, albeit for another reason.
The Special Industrial Package that was extended by five years last time has expired in the Month of June and this package too proved to be insufficient to make the industry sector achieve the heights it was meant to after the government announced the extension of the Industrial package.
Notably, the government in 2002 felt that the industrialisation of the J&K State would not become a reality unless a Special Industrial Package was given by the Centre and the State saw to it that the industrial development was going on smoothly with the goals set forth to be achieved within a time frame.
Though the package announced by the Centre helped in easing out the situation to some extent as hundreds of industrial units were established in the state. The move also ensured jobs to people.
Importantly, the new tax regime has cast some doubts in the minds of these young entrepreneurs as the experts believe that the Department of Industrial Policy and Promotion, Government of India may not be forthcoming owing to the fact that new tax regime was being rolled out from July 1.
In view of these facts, there is speculation among the industrialists that the state government should intervene in the matter. The state can take responsibility and try its best to bail out these entrepreneurs by seeking a positive response from the federal government over the issues that are haunting the budding enterprises.
Even though an initiative has been taken on the ground by the industrialists of the State on their own as they have visited the office of the Department of Industrial Policy and Promotion (DIPP) in New Delhi.
It also needs a mention that the state of Jammu and Kashmir is one of the most underdeveloped states in terms of Industrialisation. The state falls in a difficult terrain zone and as such is facing a lot of issues in terms of transportation and availability of infrastructure otherwise needed for a robust industrial growth.
What is needed at this juncture is a serious effort by the government to seek suggestions from the young and budding entrepreneurs and formulate a draft that can be submitted to the federal government at the highest level so that all the inhibitions and reservations expressed are put to rest.