Srinagar, Feb 1: The Union Budget 2022 has been met with mixed feelings of disappointment, hope and some enthusiasm by diverse business communities of Jammu & Kashmir. While, at one end, there is expression of disappointment that there are no specific sops for loss-bearing businesses in general trade, tourism, industrial and agriculture sectors in J&K, there are also general expressions of hope that some of the general proposals in the budget might have a positive trickle down effect in Jammu & Kashmir too.Ziraat Times brings to its readers here exclusive reactions shared by key representatives from various business sectors in Jammu & Kashmir.
Arun Gupta President, Jammu Chamber of Commerce and Industries (JCCI)
The Budget 2022 has nothing significant for trade and industry. Overall, everything is touched in the budget but it has come with a big disappointment for the traders and industrialists who were confronting mounting pressure due to restrictions and continuous setbacks in the last over two years due to the Covid19 pandemic and its related problems. While the government has announced certain benefits for the overall development of the country, which are welcome steps, what is missing in the budget is a big announcement for marginal traders who were worst hit by the pandemic and expecting relief from the Modi Government in the form of significant sops or some other big reliefs or incentives.
Sheikh Ashiq – President, Kashmir Chamber of Commerce and Industries (KCCI)
By having a cursory look at the budget it seems there is nothing for Kashmir. There were expectations that the budget will address the issues confronting the business community here. We were hopeful that certain sops will be announced but the budget document has nothing for the revival of the businesses in Kashmir Valley.
Mushtaq Ahmad Chaya – Chairman, Jammu and Kashmir Hoteliers Club
The Union Budget has not provided anything for the tourism sector which has been left battered by the COVID lockdowns. From the last two years we are incurring huge losses, and we had high expectations that the budget will provide succor to the hospitality sector but sadly there is nothing in the budget for this sector which generates a huge percentage of employment across India. Though there are some announcements in the budget which are welcome, like the extension of Emergency Credit Line Guarantee Scheme (ECLGS) up to March 2023 with the additional amount being earmarked exclusively from Rs 50,000 crore to Rs 5 Lakh crore is a welcome decision.
Muhammad Yaseen Khan – President, Kashmir Traders and Manufacturers Federation (KTMF)
Kashmir traders have witnessed an unprecedented loss during the last three years. During our interactions with the government representatives, we have put forth this point and they too acknowledged it during pre-budget consultations. But looking at the budget it seems our suggestions have been dumped in dustbins. After J&K was turned into UT, our expectations are more from the Union Budget, but our hopes have been dashed. There is nothing for the tourism sector, general trade, no interest waiver. On one hand, the government says that the GST collection has increased and on another hand it says the fiscal deficit has increased. This is a zero-sum budget for Kashmir and we are gravely disappointed with it.
Baldev Singh Raina – MD Peaks Auto Ltd and chairman PHDCCI, Kashmir chapter
Overall, this seems to be a people-friendly Budget, keeping in mind the growth of the nation. The Union Budget 2022-23 has created opportunities for youth to venture in IT Sector through various announced schemes of digitization, drones for crop assessment, Desh e-portal for up skilling of youth, digital currency, animation visual effects gaming and comic (AVGC) Taskforce, 5G Auctioning, R&D in defence, etc. These are all welcome steps. But there is not much in store for the salaried and the middle classes. In particular, we were expecting recovery measures to be taken in the Budget for consumer spending.
Ovais Jamie – General Secretary, Federation Chamber of Industries Kashmir (FCIK)
We feel anguished & unsatisfied about the Budget of 2022-23 presented by the Finance Minister. FCIK believes the budget has nothing to boost demand in the MSME sector. Though the ECGLS Scheme has been extended up to March 2023 with additional Rs 50000 cr infusion, the infusion of capital without work in the MSME sector is not going to generate the results. The earlier Rehabilitation Scheme has not served the purpose as the paid up interest and installment has been capitalized & rescheduled and the industry was expecting financial support for the closure for the businesses by the lockdown imposed by the government from August 2019. The Industry was expecting the stimulus from the Budget, which unfortunately disappoints the industrial sector. J&K’s industrial sector requires a special package, allocation of funds & marketing support for the existing industrial products.
Rahul Sahai – Chairman, PHDCCCI, Jammu chapter
ECLGS extention upto march 2023, with an expanded cover of Rs 5 lakh crore, will give some relief to MSMEs, startups. Drone Shakti for agriculture activity is a boost to startups and startups should work hard in this area. Introduction of digital currency, giving bitcoin some direction and taxing at 30% is a relief to people investing in bitcoins. PM GATI SHAKTI plan also sounds wonderful. MSME payments online mechanism is very good step but should be implemented in letter and spirit. SHWET NITI which focuses on digital university. Mission Shakti is wonderful for women but it needs proper implementation.
What we also need is to have review meetings before the next budget and see how schemes have been implemented, what are the reasons of lapsed funds. Learnings from these meetings should be corrected in next budget, synchronization with states regarding utilizations of funds and implementation of schemes is the need of the hour We were expecting little more on women entrepreneurship. Robust strategy on dependence on imports from other countries needs to be corrected and needs some more attention.
Vicky Shaw – Co-chair, PHDCCI-Kashmir
The proposal for GIFT City International Universities, the focus on digital aspects of education and creating greater access for students with structured high-quality content and e-passports with embedded chips and ELCGSextension specially for the struggling hospitality sector was much needed and are very timely announcements. But, as we all know, the economy’s performance remains closely tied to the waves of pandemic. The Covid pandemic is still calling the shots for the economy and the Handicraft and Cottage Industry, which is desperately struggling, has got little help from this year’s Budget. There is also nothing concrete for increasing the capacity of consumer spending.
Bashir Ahmad Basheer – Chairman, All Kashmir Valley Fruit Growers Cum Dealers Union
None of our suggestions have been incorporated in the budget. Our demand to introduce the MIS scheme, imposition of taxes on Iranian apples, interest waiver, and many other suggestions didn’t find any mention in the budget. The horticulture sector has been left unattended in the budget.
Tariq Rashid Ghani – President, Chamber of Commerce and Industries Kashmir (CCIK)
The government has failed to deliver on its promise. There is nothing in the budget for Kashmir. The business community had high expectations but, unfortunately, the Union Budget has failed to live up to those. Tourism, startups have been ignored, general trade has nothing and our demand for capital infusion has been met with cold shoulder. We are disappointed.
Bashir Ahmad Rather – President, Kashmir Traders and Manufacturers Federation (R)
Apart from tax share to J&K, there is no mention of Kashmir in the budget document. After the abrogation of article 370 the government claimed to develop Kashmir, but it has failed to do so far and budget is part of this failure.
