Budget Boost for MSMEs, But Where Is Jammu Kashmir’s Share, Asks Industry Body | Kashmir Life

SRINAGAR: Welcoming the Union Budget’s renewed thrust on manufacturing, micro, small and medium enterprises (MSMEs), exports and higher capital expenditure, the Federation of Chambers of Industries Kashmir (FCIK) on Friday said the proposed measures could strengthen industrial growth and provide stability to enterprises across the country.

However, the apex industrial body expressed disappointment over what it described as the Budget’s failure to address the specific and long-pending requirements of Jammu and Kashmir’s industrial sector.

In a statement, FCIK said that while the national framework for MSME and manufacturing support was encouraging, the absence of region-specific interventions for the Union Territory amounted to a missed opportunity at a critical juncture for local industry.

“Despite its significant potential in MSMEs, textiles, handicrafts, agro-industries and exports, Jammu and Kashmir has faced persistent structural challenges, compounded by prolonged spells of disturbance and, more recently, the 2019 reorganisation and the COVID-19 pandemic,” the body stated.

Given these constraints, the industry had expected a dedicated package and targeted fiscal measures for the region, particularly to support existing and stressed industrial units struggling to recover.

FCIK noted that Jammu and Kashmir has largely remained outside the country’s mainstream industrial growth trajectory for decades. It said timely and focused interventions could have helped local MSMEs rebuild capacities, generate employment and contribute meaningfully to national economic expansion.

At the same time, the chamber acknowledged that several announcements in the Budget — including faster capital expenditure, export competitiveness initiatives, MSME liquidity and equity support, the Self-Reliant India Fund, and incentives for technology adoption — provide a positive national roadmap for industrial development.

“These initiatives can improve scalability, competitiveness and long-term sustainability of enterprises across the country,” it said, adding that their impact in Jammu and Kashmir would depend on complementary localised strategies.

The federation maintained that if these national measures are backed by region-specific incentives and focused implementation, they could promote inclusive development, integrate J&K enterprises into national and global value chains, and unlock the Union Territory’s industrial and entrepreneurial potential.

While appreciating the Centre’s vision of raising manufacturing’s contribution to 25 per cent of GDP by 2047, FCIK stressed that such an ambitious target cannot be achieved through uniform policies alone. Regions that have historically lagged, it said, require additional support in the form of infrastructure upgrades, skill development, credit access and targeted fiscal incentives.

The body also raised concern over the modest increase of ₹2,000 crore in central allocations to the UT government compared with the previous year, terming it inadequate to bridge long-standing developmental gaps or provide meaningful stimulus to revive industrial units.

Reiterating its willingness to engage constructively, FCIK said it remains ready to work closely with the government and other stakeholders to ensure that the Budget’s intent translates into tangible benefits for businesses, workers and entrepreneurs in Jammu and Kashmir.