The Biz Reporter
Srinagar, Feb 1: While welcoming the Union Budget’s strong emphasis on strengthening the manufacturing sector, supporting micro, small and medium enterprises (MSMEs), promoting exports and accelerating capital expenditure, the Federation of Chambers of Industries Kashmir (FCIK) on Saturday said the measures have the potential to bring much-needed stability to the MSME and manufacturing ecosystem across the country.
However, the apex industrial body expressed disappointment over what it described as the complete neglect of Jammu and Kashmir’s region-specific industrial concerns in the Budget, despite these issues having been repeatedly flagged to the Union Government by the UT administration and industry stakeholders.
FCIK noted that Jammu and Kashmir, despite its significant potential in MSMEs, textiles, handicrafts, agro-based industries and exports, continues to face deep-rooted structural challenges. These, it said, have been exacerbated by prolonged periods of disturbance and further compounded by the 2019 reorganisation and the impact of the COVID-19 pandemic.
Against this backdrop, the industry had expected a dedicated package and targeted fiscal measures for the region, particularly to support existing and stressed industrial units. The absence of such interventions, FCIK observed, represents a missed opportunity at a time when focused support could have played a transformative role in reviving local enterprises and integrating them into the national growth trajectory.
The industrial body pointed out that Jammu and Kashmir has largely remained outside the mainstream of India’s industrial growth for decades. Carefully designed, region-specific interventions at this stage could have enabled local MSMEs to recover, scale up and contribute meaningfully to the broader national economy.
At the same time, FCIK acknowledged that several national-level measures announced in the Budget—including accelerated capital expenditure, initiatives to enhance export competitiveness, liquidity and equity support for MSMEs, the Self-Reliant India Fund and incentives for technology adoption—provide an important framework for industrial growth. These steps, it said, can improve scalability, competitiveness and long-term sustainability of enterprises across the country.
FCIK stressed that if these national initiatives are complemented with focused implementation strategies and incentives tailored to Jammu and Kashmir, they could promote inclusive development, strengthen the integration of local enterprises into national and global value chains, and unlock the Union Territory’s industrial and entrepreneurial potential.
While appreciating the Government’s vision of raising manufacturing’s contribution to 25 per cent of GDP by 2047, the body underlined that achieving this goal will require more than uniform, pan-India policies. It called for stronger support to scale existing capacities, upgrade infrastructure, build skills and extend targeted incentives in regions like Jammu and Kashmir that have historically lagged behind.
FCIK also expressed concern over what it termed a modest increase of ₹2,000 crore in central allocations to the UT government over the previous year, stating that it falls 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 other stakeholders to ensure that the intent of the Union Budget translates into tangible outcomes for businesses, workers and entrepreneurs in Jammu and Kashmir.
