Budget evokes mixed response among business community

Srinagar, July 23: The Kashmir business community has expressed mixed reactions to the Union Budget 2024-25 presented by Finance Minister Nirmala Sitharaman in the Parliament on Tuesday.

While some sectors have welcomed the budget’s provisions, others have voiced disappointment over unaddressed concerns.

The Federation of Chambers of Industries Kashmir (FCIK) praised the budget's focus on fostering the MSME ecosystem.

FCIK President Shahid Kamili expressed satisfaction with the attention given to MSMEs, particularly in the labour-intensive manufacturing sector.

“Specific changes in financing, regulation, and technology support formulated in the union budget besides measures for sustainability and up-scaling of skill will surely help MSMEs in their revival, growth and competition,” Kamili said.

He highlighted several key initiatives that the FCIK sees as beneficial, including the introduction of a credit guarantee scheme for MSMEs to obtain term loans without collateral.

"The seamless access to credit and other reformatory provisions including providing of credit during tough times and enhanced limit of Mudra loan will empower MSMEs to scale their operations," he said.

The FCIK also welcomed initiatives aimed at helping MSMEs and traditional artisans sell their products in international markets, including the proposed establishment of e-commerce export hubs in public-private-partnership mode.

Kamili expressed hope that these measures would facilitate the export of handicraft-related services from the region.

The FCIK president emphasised that these steps aim to boost the development of manufacturing and service sector MSMEs with high potential for job creation.

He urged the J&K government to take cues from these initiatives and formulate a robust plan to revive the struggling MSME sector in the region.

However, not all sectors share FCIK's optimism.

President of Kashmir Trade Alliance, Aijaz Shahdar expressed disappointment with the budget's provisions for J&K.

“We had high expectations about the Union Budget. But it has not given anything special to J&K. We have been demanding a business stimulus package which didn't find any mention,” Shahdar said.

However, he acknowledged that certain measures aimed at job creation were welcome.

The fruit-growing industry, a significant sector in Kashmir's economy, voiced particular dissatisfaction.

Growers had hoped for the imposition of import duties on foreign apples to protect the local industry.

Bashir Ahmad, a fruit grower, said, “We were demanding import duty and high taxes on imported apples, but it has not been done. Our industry is facing huge problems due to the high influx of foreign apples.”