The Biz Reporter
Srinagar: The Kashmir Chamber of Commerce and Industry (KCCI) delegation led by Senior Vice President Ashiq Hussain Shangloo, Secretary General Faiz Bakshi and Past President Mushtaq Ahmad Wani, attended a pre-budget consultation meeting today chaired by Hon’ble Chief Minister Mr. Omar Abdullah at the Civil Secretariat.
During the meeting, KCCI submitted a comprehensive set of suggestions and a structured roadmap aimed at reviving businesses under stress while simultaneously increasing employment opportunities.
The Chamber’s proposals focused on actionable steps to address long-standing economic challenges in the region, targeting both traditional industries and emerging sectors. The roadmap highlighted solutions to enhance industrial productivity, support local enterprises, and create an ecosystem conducive to entrepreneurship and innovation.
Prior to the meeting with the Hon’ble Chief Minister, the KCCI Senior Vice President held extensive discussions with senior government officials, including the Commissioner Secretary of Industries and Commerce, DG Codes Finance Department, DG Budget, and GeM Coordinator J&K. The discussions revolved around budget-related policies and the alignment of financial resources to support industrial growth and business development.
KCCI Senior Vice President and Secretary General emphasized the critical importance of environmental sustainability during the pre-budget meeting, highlighting key areas such as wetlands conservation, the development of playgrounds, and the enhancement of tourism opportunities. Detailed discussions also focused on sustainable practices in agriculture and horticulture, underscoring the need for innovative approaches that align with ecological preservation.
Below is the detailed submission of suggestions put forth by KCCI:
KCCI aims to address the evolving economic landscape post-2019, focusing on the agriculture, services, and industrial sectors, including tourism, trade, and finance. Key challenges and priorities are outlined below: –
ALARMING UNEMPLOYMENT PROBLEM -HOW TO ADDRESS IT :-
Jammu & Kashmir faces high unemployment, reportedly more than 17 lacs, particularly among youth and educated individuals. To address this, the government should make budgetary provisions in sectors with potential to create jobs, promote private sector, encourage entrepreneurship and start ups and lay stress on skill development.
HANDICRAFTS
The handicrafts sector for decades had been the largest employment provider after Agriculture. However, after 2013-14, particularly post 2014- Devastating floods, handicrafts never looked same again. Having recorded steady growth in Exports touching nearly 2000 crores during 2013-14. Freigth subsidy for exports for air.
Incentives on Exports :-
Increased Incentives for GI Products: –
Establishment of an International Exhibition Mart:
TOURISM SECTOR
Tourism is one of the most significant economic drivers in Jammu & Kashmir, contributing to employment, local businesses, and cultural preservation. The government should allocate funds for infrastructure development, eco-tourism, heritage conservation, adventure tourism, and digital marketing to promote J&K as a global tourist destination.
DEVELOPMENT OF TOURISM AUTHORITIES / TOURIST DESTINATIONS :-
PROMOTING ADVENTURE TOURISM:
PRESERVATION OF HOUSEBOATS AS HERITAGE
TOURISM PROMOTION :
Promoting brand Kashmir at National & International level by participating in leading national and international Tourism Promotion Fairs/Marts.
Promotion of Downtown/Shehr e Khas as a Heritage Tourism Destination:
AGRICULTURE
The 16.5 % contribution of Agriculture sector to SGDP and major employment generator can be a game changer for our economic development. It’s contribution can cross 30% in coming years in case the existing policies are reviewed
HORTICULTURE:
The Horticulture HD Plantation needs a push by developing more suitable areas across districts for Apples, Cherry, walnut ,Almond ,Plum ,Peach ,strawberries etc
Recommendation for Crop Insurance Scheme :-
COLD STORAGE & FOOD PROCESSING
Cold Storage Facilities:
Temperature-Controlled Transport Trucks:
Food Processing and Packaging Centers :-
PROMOTION OF ORGANIC KASHMIRI PRODUCE :-
INDUSTRY
INDUSTRIAL GROWTH & MANUFACTURING EXPANSION :-
Special Attention is needed to be given to Industrial Sector Revitalization.
The industrial sector in Jammu & Kashmir is facing significant challenges, with several units becoming non-operational due to circumstances beyond their control. This sector requires focused attention and tailored interventions to ensure its revival and growth.
REVIVAL OF SICK UNITS
Implementation of J&K Procurement Policy 2024 :-
Fast-Track Development of Industrial Estates :-
KCCI strongly recommends the simplification of business registration, land acquisition, and licensing processes to attract investors and entrepreneurs to J&K and improve the ease of doing business in the region.
SELF-EMPLOYMENT / STARTUPS & ENTREPRENEURSHIP SUPPORT
Startup Funding , expansion and support to Incubation Centers.
Special grants and low-interest loans for startups and women entrepreneurs in handicrafts, IT sectors and other sectors.
Allotment of space on priority basis
SKILL DEVELOPMENT & TRAINING PROGRAMS
KCCI believes that In today’s global scenario the job requirements depend on possession of skills than degrees.
PRIVATE SECTOR & INDUSTRIAL JOB CREATION
IT & BPO Job Opportunities.
Development of IT hubs in Kashmir for software and outsourcing jobs.
Collaboration with corporates, business houses and industry.
IRRIGATION & WATER MANAGEMENT
Considering the reality of climate change and global warming resulting in depletion of water resources, the irrigation and water management system need modernisation.
DAIRY, POULTRY & FISHERIES DEVELOPMENT
We annually import poultry products for about Rs. 2500 crores. There Is need to incentivise installation of latest technology. it will help in reducing our dependence on imports, encourage entrepreneurship and help in employment generation.
Thrust on Development of Fisheries & Trout Farming:
Support for trout farms in Kokernag, Gurez, Pahalgam and other suitable areas.
Promote Establishment of modern fish hatcheries to increase production.
Development of Leather Industry
GENERAL TRADE
KCCI strongly recommends that the government prioritize this vital sector in the upcoming Budget 2025-26. Adequate budgetary allocations should be earmarked to address the challenges and revive the general trade and retail segment. Key interventions should include enhancing warehousing facilities, easing transportation bottlenecks, simplifying GST compliance, and introducing incentives to boost business confidence.
ENVIRONMENTAL SUSTAINABILITY
The Kashmir Chamber of Commerce and Industry (KCCI), as a responsible apex business chamber, acknowledges the critical environmental challenges surrounding us. Global warming, once a subject of academic discussion, has become a stark reality with profound human and financial implications, particularly for Kashmir, an agrarian economy heavily dependent on its natural resources.
HEALTH
BUDGET PROVISIONS FOR HEALTHCARE & MEDICAL INFRASTRUCTURE IN JAMMU & KASHMIR:-
Health Investment:
STRENGTHENING PUBLIC HEALTHCARE INFRASTRUCTURE
DEVELOPMENT OF ROBUST SPORTS INFRASTRUCTURE : –
RENEWABLE ENERGY & GREEN INDUSTRY GROWTH :-
The KCCI suggests providing subsidy on installation of Solar power in commercial sector keeping in mind the growing demand and shortage of power. If allocated it will not only help commercial sector but also in the power generation for use by the Power Development Department for other consumers.
EDUCATION
INFRASTRUCTURE
Educational infrastructure requires enhancement to meet modern standards and improve human capital. There is a urgent need for upgrading the infrastructure of Government Schools , a considerable number of which lack basic civic amenities, compound.
VOCATIONAL TRAINING PROGRAM
TINKERING LABS
NPAs:-
Hundreds of businesses, entrepreneurs, and industries in Kashmir have succumbed to economic hardships caused by the COVID-19 pandemic and the prolonged challenges unique to the region’s circumstances. These NPAs represent not only financial strain on businesses but also missed opportunities for sustaining economic growth and employment in the region.
The businesses impacted are suffering immensely, battling to revive operations and pay off their debts. Many of these units are still viable but lack the necessary support to rehabilitate their operations. KCCI strongly advocates for constructive intervention by the government as part of Budget 2025-26. A roadmap must be devised to provide relief to businesses that have turned into NPAs due to uncontrollable circumstances.
Amnesty for Commercial Power Consumers:
KCCI seeks budgetary provisions for providing amnesty for commercial consumers as the government already announced such a scheme for domestic consumers in J&K.
Poultry Sector :-
The poultry sector in Jammu and Kashmir has immense potential to generate employment. A few years back, it catered to 85% of local demand, significantly contributing to job creation. However, recent trends indicate a severe decline, with local production dropping by nearly 300%, now only meeting 25% of regional needs. This downturn has resulted in widespread unemployment among workers in the sector.
Sector-Wise Focus for Growth
Agriculture:
Challenges: Poor infrastructure, lack of technology, limited market access.
Priorities: Boost rural infrastructure, modern farming, and market linkages.
Services:
Challenges: Tourism instability, weak healthcare infrastructure.
Priorities: Diversify tourism, expand healthcare, modernize education.
Industry:
Challenges: Low investments, infrastructure gaps, complex regulations.
Priorities: Offer incentives, improve infrastructure, simplify rules.
Tourism:
Challenges: Seasonal dependency, poor infrastructure, safety concerns.
Priorities: Promote year-round tourism, enhance facilities, ensure safety.
Trade:
Challenges: Logistical constraints, limited markets, difficult regulations.
Priorities: Improve logistics, market connectivity, and ease trade rules.
Finance:
Challenges: High NPAs, limited credit, low financial literacy.
Priorities: Fix NPAs, improve credit access, promote financial education.
Cross-Sectoral Needs:
Stable policies, PPPs, skill development, digital infrastructure expansion.
