Srinagar: The Federation of Chambers of Industries Kashmir (FCIK) on Friday welcomed the Union Budget’s emphasis on strengthening the manufacturing sector, supporting micro, small and medium enterprises (MSMEs), promoting exports and expanding capital expenditure, saying these measures could bring much-needed stability to the country’s industrial ecosystem.
However, the apex industrial body expressed disappointment over what it described as the Budget’s failure to address the specific and long-standing needs of Jammu and Kashmir’s industrial sector, despite repeated representations by the UT administration and industry stakeholders.
In a statement, FCIK said that Jammu and Kashmir, despite its significant potential in MSMEs, textiles, handicrafts, agro-industries and exports, continues to face deep-rooted structural challenges. These, it noted, have been compounded by prolonged periods of disturbance, the 2019 reorganisation of the erstwhile state and the economic fallout of the COVID-19 pandemic.
Against this backdrop, the Chamber said industry in the region had expected a dedicated package and targeted fiscal interventions in the Union Budget, particularly for existing and stressed industrial units. It observed that Jammu and Kashmir has largely remained outside the mainstream industrial growth trajectory for decades, and timely, region-specific interventions could have played a transformative role in reviving local MSMEs and enabling the region to contribute more meaningfully to national economic growth.
At the same time, FCIK acknowledged that several measures announced in the Budget — including acceleration of capital expenditure, initiatives to enhance export competitiveness, MSME liquidity and equity support, the Self-Reliant India Fund and incentives for technology adoption — provide a positive national framework for industrial development. These initiatives, it said, could improve scalability, competitiveness and long-term sustainability of enterprises across the country.
FCIK stressed that if these national initiatives are complemented by region-specific incentives and focused implementation strategies, 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 Government’s vision to raise manufacturing’s contribution to 25 per cent of GDP by 2047, the Chamber cautioned that achieving this target would require more than uniform, pan-India policies. It said stronger support is needed to scale existing capacities, upgrade infrastructure, build skills and extend targeted incentives, particularly in regions such as Jammu and Kashmir that have historically remained on the margins of industrial growth.
The Chamber also expressed concern over the modest increase of ₹2,000 crore in central allocations to the UT government compared to the previous year, stating that the increment falls short of bridging the region’s long-standing developmental gap or providing adequate stimulus for the 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 on-ground outcomes for businesses, workers and entrepreneurs in Jammu and Kashmir.
