Criticises neglect of J&K’s regional needs
Srinagar: While welcoming the Union Budget’s emphasis on strengthening the manufacturing sector, supporting MSMEs, promoting exports, and expanding capital expenditure, the Federation of Chambers of Industries Kashmir (FCIK) on Sunday said that these measures have the potential to bring much-needed stability to the MSME and manufacturing sector across the country.
However, the apex industrial body has expressed deep disappointment over the Budget’s complete neglect of the pressing regional needs of Jammu & Kashmir’s industrial sector, despite these concerns having been repeatedly brought to the attention of the Union Government by the UT administration and industry stakeholders.
“Despite its significant potential in MSMEs, textiles, handicrafts, agro-industries and exports, Jammu & Kashmir has faced persistent structural challenges, compounded by prolonged spells of disturbance and, more recently, the 2019 re-organisation and the COVID-19 pandemic,” FCIK said in a statement issued here.
In this backdrop, the industry had strongly expected the Union Budget to announce a dedicated package and targeted fiscal measures for the region, particularly for existing and stressed industrial units.
FCIK observed that Jammu & Kashmir has largely remained outside the country’s mainstream industrial growth trajectory for decades. Targeted interventions at this juncture could have played a transformative role, not only in helping local MSMEs recover and expand, but also in enabling the region to contribute meaningfully to the broader national growth story.
At the same time, FCIK acknowledged that several measures announced in the Union Budget—such as the acceleration of capital expenditure, export competitiveness initiatives, MSME liquidity and equity support, the Self-Reliant India Fund, and incentives for technology adoption—provide an important national framework for industrial growth. These initiatives are positive steps toward improving scalability, competitiveness, and long-term sustainability of enterprises across the country.
“If these national initiatives are complemented with region-specific initiatives, incentives and focused implementation strategies, they can promote inclusive development, strengthen integration of J&K enterprises into national and global value chains, and unlock the potential of the Union Territory’s industrial and entrepreneurial base,” FCIK said.
While appreciating the Government’s vision to raise manufacturing’s contribution to 25 per cent of GDP by 2047, FCIK emphasized that achieving this ambitious goal will require more than uniform, pan-India policies. It will necessitate stronger support to scale existing capacities, upgrade infrastructure, build skills, and extend targeted incentives, particularly in regions such as Jammu & Kashmir that have historically remained on the margins of industrial growth.
FCIK also expressed concern that the modest increase of ₹2,000 crore in central allocations to the UT government over the previous year falls far short of addressing the region’s long-standing developmental gap or providing the stimulus required for revival of existing industrial units.
Reiterating its commitment to constructive engagement, FCIK said it remains ready to work closely with the Government and all stakeholders to ensure that the intent of the Union Budget translates into tangible, on-ground outcomes for businesses, workers, and entrepreneurs in Jammu & Kashmir.