The historic swearing-in of National Conference leader Omar Abdullah as the Chief Minister of Jammu & Kashmir has evoked a wave of optimism among the former state’s business community. Various trade, industry, and horticulture bodies, such as the Kashmir Valley Fruit Growers Cum Dealers Union, Federation of Chambers of Industries Kashmir (FCIK), Kashmir Chamber of Commerce and Industry; Kashmir Traders and Manufacturers Federation (KTMF), PHD Chamber of Commerce and Industry (PHDCCI) Jammu and J&K Private Schools Association, among others, while congratulating the new government, have also expressed their hopes for a revitalized approach to the economic challenges that have long been faced by the business community here.
Omar Abdullah’s earlier tenure from 2009 to 2014 is remembered for pragmatic decisions that helped address critical issues in various sectors, especially industrial and horticultural. However, as he assumes office again, the landscape has dramatically shifted, and so have the needs and expectations of Jammu & Kashmir’s business community. The challenges now are more multifaceted, and while his leadership has apparently inspired confidence, the expectations of the business community reflect the sheer scale of economic revival required.
One of the loudest calls comes from the industrial sector, which sees itself on the brink due to long-standing financial viability issues. The FCIK has pointed out the precarious situation many local enterprises find themselves in. The industrial community believes simultaneous application of three different industrial policies has created confusion among stakeholders, making it essential for the new government to streamline industrial policies to avoid approval delays and create a unified policy environment. The expectation is for a comprehensive, practical policy that consolidates incentives from both central and UT government schemes.
Moreover, the business community is eager to see a public procurement policy that prioritizes local industries in government purchases. Ensuring a level playing field for these businesses could not only help in reviving struggling industries but also create more jobs for the youth in the Valley, a key concern given the region’s high unemployment rate.
The horticulture sector, particularly apple production, remains the backbone of Kashmir’s economy, employing a significant portion of the population. Under Omar Abdullah’s previous government, critical bottlenecks in the horticulture industry were addressed, and the Fruit Growers Union is hopeful for more substantial reforms in this term. The expectations here are clear: improvement in supply chain infrastructure, subsidies for horticultural inputs, and better access to national and international markets.
The demand for infrastructure development, especially cold storage and transportation facilities, is critical for the horticulture sector. Promoting sustainable practices in horticulture would also bolster farmers’ long-term economic stability, especially in the face of changing climate patterns that have increasingly disrupted agriculture.
Another pressing concern highlighted by industrial associations is the rising number of non-performing assets (NPAs) in the small and medium-sized enterprise (SME) sector. NPAs have become a major barrier for local businesses, hindering their access to credit. A dedicated financial package for struggling MSMEs, along with simplified access to loans, is a crucial demand from the business community.
J&K’s industrial community sees reforming lending policies and offering moratoriums on existing loans for industries hit by natural calamities and political uncertainty to go a long way in reviving the industrial sector. Furthermore, the government must ensure that small traders and entrepreneurs receive timely financial assistance and are protected from the crushing burden of NPAs.
A recurring theme in the appeals from the business community is the demand for greater involvement in decision-making processes. Stakeholders from sectors like industry, horticulture, and trade have highlighted the need for consistent engagement with the government to devise effective solutions. During Omar Abdullah’s first tenure, such engagement proved effective in resolving key challenges, and stakeholders are keen for this collaborative approach to continue.
While the business community’s expectations are vast, it is also important to acknowledge the limitations Omar Abdullah’s government will face. That acknowledgement would go a long way in creating an environment of mutual trust and understanding.
