FCIK applauds Budget’s focus on industrial growth; calls for action on key initiatives

8 March 2025

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Srinagar: The Federation of Chambers of Industries Kashmir (FCIK) has expressed satisfaction with the budget presented by Chief Minister Omar Abdullah in the J&K Legislative Assembly on Friday, particularly its emphasis on industrial expansion.

In a meeting chaired by Shahid Kamili, the valley’s leading industrial body commended the government’s targeted support for both existing industries and emerging sectors like IT, renewable energy, and biotechnology. The body described these initiatives as growth-oriented, with the potential to transform J&K into a dynamic hub for growth and employment.

FCIK views the proposed comprehensive review of industrial policies and the introduction of a renewed framework as crucial steps to unlock the region’s full industrial potential. The chamber hopes the renewed policy will address the urgent needs of existing industries, facilitating their revival and rejuvenation.

“The allocation of a portion of the ₹28,400 Crore New Central Sector Scheme (NCSS), combined with a focus on equal opportunities, can provide significant support to the 40,000 industrial units across J&K, driving employment generation and encouraging further investment inflow,” said Kamili.

The chamber also welcomed the government’s announcement of a new public procurement policy offering preferential treatment to local manufacturers, addressing concerns over the GeM platform. However, FCIK pointed out that feedback provided to the Chief Minister on MSME performance, based on GeM data, doesn’t reflect ground realities. The platform’s failure to differentiate between manufacturing and service-based MSMEs has disadvantaged local manufacturers over the past five years.

FCIK commended the initiative to establish worker housing facilities within industrial estates and called for similar provisions to be made in both existing and upcoming estates. However, the chamber considered the ₹100 crore allocation for upgrading existing industrial estates insufficient given their substantial needs for improvement.

The announcement of the Industrial Advisory Committee was also hailed in the meeting, emphasizing its importance in fostering inter- and intra-departmental cohesiveness and regular stakeholder engagement. The members termed this initiative as crucial for identifying and addressing policy loopholes and implementation challenges in a timely manner.

FCIK also appreciated the government’s efforts to streamline SGST reimbursement and turnover incentives. However, it urged an equal bifurcation of the budgetary allocation between the two provinces to ensure greater support for units in more challenging environments. Furthermore, the chamber demanded that SGST reimbursement be extended to MSMEs making both intra-state and inter-state supplies without discrimination.

While FCIK acknowledged the government’s recognition of the challenges in startup funding, including venture capital, incubation, mentorship, and market access, the chamber urged that these initiatives be extended to newly created ventures by young entrepreneurs in recent years.

The chamber praised the CM for facilitating easier access to credit, technology, and capacity-building programs to ensure smooth credit flow to MSMEs under CGTMSE. However, it called for the implementation of all collateral-free schemes alongside CGTMSE to further enhance credit accessibility for MSMEs.

FCIK supported the government’s focus on technology-driven regulatory frameworks and satellite imagery for sustainable mining but stressed the need for clear pathways for industry growth.

“These measures should be complemented by educational and support initiatives to prevent over-regulation that may hinder the progress of the mineral-based industry”, observed the members.

The chamber strongly endorsed the government’s focus on skill development but emphasized the importance of prioritizing job quality and sustainability. FCIK urged that the initiative be pursued in mission mode, with enhanced private sector collaboration to align skill development with the growth of targeted industries.

While expressing satisfaction that many of FCIK’s pre-budget submissions had been incorporated into the budget, the members expressed disappointment over the omission of key industry issues, including the announcement of amnesty schemes for power, the pre-GST VAT regime, one-time settlement schemes, and other such initiatives. FCIK hopes these crucial amnesties will be addressed during the budget session.

FCIK also applauded the initiatives aimed at boosting agriculture, horticulture, and tourism sectors, as well as the landmark decisions in social welfare, education, and health services.

However, FCIK stressed that the real challenge lies in the effective implementation of all announced initiatives.

“The promises made in the budget must translate into tangible action, particularly in streamlining industrial policies, improving infrastructure, empowering local businesses, and ensuring fiscal sustainability,” said Kamili, assuring that the chamber remains ready to collaborate with the government to ensure the success of industrial initiatives.