FCIK hails J&K Ease of Doing Business Bill, calls it landmark regulatory reform

SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) has welcomed the Jammu and Kashmir Ease of Doing Business Bill, 2026, describing it as a landmark legislative initiative aimed at transforming the regulatory environment for enterprises, particularly Micro, Small and Medium Enterprises (MSMEs), in Jammu and Kashmir.

The FCIK said the legislation addresses several long-standing concerns raised by the Federation regarding multiple permissions, repetitive documentation, No Objection Certificates (NOCs), inspections and prolonged decision-making processes faced by enterprises.

Welcoming the initiative, the Federation said the Government headed by Chief Minister Omar Abdullah had acknowledged the difficulties faced by entrepreneurs and the general public due to excessive formalities, procedural duplication, delays and discretionary powers at different levels.

The FCIK said regulation remains necessary to protect public safety, the environment and other legitimate public interests, but should facilitate lawful economic activity rather than impede it. It said the Bill’s principles of “Permission by Exception”, “One State”, proportionality and risk-based regulation, reliance and certainty, and transparency and predictability marked a significant shift from a conventional permission-driven system.

The Federation particularly welcomed provisions aimed at preventing enterprises from being repeatedly asked to provide information already available with another government authority. It also highlighted provisions stating that unpublished compliance requirements cannot be imposed and that, where multiple lawful regulatory options are available, authorities should adopt the option imposing the least regulatory burden while adequately safeguarding public interest.

Focus on MSMEs and employment

The FCIK said the reforms assume particular importance in Jammu and Kashmir, where unemployment and wider economic challenges cannot be addressed through government employment alone.

It said the private sector, particularly MSMEs, has an important role in creating jobs, generating incomes, developing skills and expanding economic activity.

“Facilitation of enterprise should, therefore, not be viewed as a concession to entrepreneurs but as an economic imperative,” the Federation said.

The FCIK welcomed provisions relating to deemed approvals where authorities fail to take decisions within prescribed timelines, in-principle approvals, rationalisation of licences and NOCs, self and third-party certification, and risk-based inspections.

According to the Federation, these measures seek to shift the regulatory relationship from excessive prior permissions and administrative discretion towards clearly defined rules, timelines, responsibilities and accountability.

The proposed three-year moratorium on routine inspections and coercive regulatory measures, subject to safeguards against serious violations, was also welcomed by the FCIK.

The Federation said inspections should serve genuine safety, environmental and public-interest purposes and should not become a recurring source of disruption for compliant enterprises.

Calls for implementation in letter and spirit

The FCIK said the philosophy underlying the legislation was consistent with concerns it had repeatedly placed before the Government, arguing that entrepreneurs’ productive time should be devoted to production, innovation, marketing, employment and expansion rather than pursuing files, permissions and certificates.

It appreciated Chief Minister Omar Abdullah and his Government for addressing the issues through a comprehensive legislative framework rather than through piecemeal administrative interventions.

The Federation said the initiative sought to replace unnecessary discretion with rules, delays with timelines, duplication with convergence, and excessive permissions with greater trust and accountability.

The FCIK also expressed gratitude to the print media in Jammu and Kashmir for consistently highlighting the difficulties faced by enterprises and MSMEs.

It said editorials, independent reporting and regular publication of representations and press releases of business organisations had helped keep regulatory complexity, procedural delays and Ease of Doing Business in public discourse.

According to the Federation, sustained media coverage had also helped build wider recognition that difficulties faced by enterprises have implications for investment, employment, government revenues and the wider economy.

The FCIK hoped that the same reform-oriented approach would be reflected in the forthcoming Industrial Policy, particularly in addressing the accumulated problems of existing MSMEs, revival of viable stressed enterprises, access to affordable credit, local procurement and other structural constraints confronting industry.

“This legislation responds to concerns we have consistently placed before the Government—that enterprise cannot flourish under avoidable procedural burdens and administrative delays,” the FCIK said, expressing appreciation to the Government for recognising these concerns and translating regulatory reform into a legislative framework.

The Federation, however, said the ultimate success of the legislation would be measured by its impact on the ground. It hoped that the rules and guidelines to be framed would preserve the intent and spirit of the legislation and ensure that procedural complexities do not dilute its objectives.