Kashmir Inc pins hopes on PM's visit to revive flagging economy

Srinagar, Mar 6: The business community in Kashmir Valley is eagerly awaiting Prime Minister Narendra Modi's visit, pinning their hopes on him to revive the region's ailing economy. From industry bodies to fruit growers, expectations are running high that the Prime Minister's presence will provide a much-needed boost to the Valley's struggling sectors.

Stakeholders across various industries are hoping that the Prime Minister's visit will bring renewed focus and impetus to address the longstanding challenges hampering growth and development in Kashmir.

Rejuvenate ailing industry in J&K: FCIK

Pinning high hopes on the Prime Minister’s visit to Kashmir, the Federation of Chambers of Industries Kashmir (FCIK) has invited his attention towards the ailing industrial sector in Jammu and Kashmir pleading for rejuvenation by administering triple-therapy followed by other treatments.

FCIK in a statement said that the triple-therapy demands include earmarking of 25% funds from Central Industrial Scheme for existing industry, substantial procurement of identified industrial goods from local industry under Public Procurement Policy and structured mechanism for hassle-free credit flow / banking services to MSMEs.

While hailing the vision of PM Modi for industrial development in Jammu and Kashmir with his approval for an incentive scheme of Rs 28400 crore in 2021, the apex chamber observed that booking of expenditure under the scheme would take place only after setting up of new enterprises on ground which was likely to take some time owing infrastructural constraints though the UT government was putting in hard efforts for the same.

FCIK has solicited approval of Prime Minister for earmarking 25% of CIDS-2021 for around 40000 existing industrial units towards their revival, rehabilitation, diversification, expansion, scaling up, modernization and up-gradation. The sum earmarked could be utilized for incentives provided under the CIS besides funding the incentives provided under UT government schemes and policies including those of revival of sick units, turnover incentive, GST reimbursement etc.

The FCIK expressed confidence that upon their rejuvenation, the existing units had the potential to bounce back with renewed vigour and energy to contribute in  the economic development and employment generation of J&K in consonance with the vision and efforts of  Prime Minister.

“The new initiative would pave way for optimum capacity utilization of the existing units which doesn’t surpass even the break-even point presently” stated FCIK.

While flagging the marketing issue, FCIK has sought the intervention of the Prime Minister for his directions to reserve a substantial portion of industrial goods procured by the UT/ Central government departments/ PSUs for local manufacturers and processors.

KYEF for growth impetus

The Kashmir Young Entrepreneurs Federation (KYEF) has welcomed the Prime Minister's visit, stating that it holds the potential to catalyze entrepreneurial growth and usher in an era of prosperity and high economic growth rate.

"We have very high expectations from the visit, as PM Modi is known for his proactive approach, and his initiatives for promoting an entrepreneurial culture are hailed across the globe," said Babar Chowdhary, President of KYEF.

Chowdhary expressed optimism that the Prime Minister's visit would open doors of opportunity for the region's youth, creating jobs and avenues for the younger generation to thrive.

The entrepreneurs' body also commended Lieutenant Governor Manoj Sinha for his visionary StartUp policy, which aims to establish 2000 startups in the Valley in the coming years, a move they believe will significantly aid entrepreneurial aspirations.

"The StartUp policy is going to help a lot in fostering an environment conducive to entrepreneurship and innovation," Chowdhary added.

Kashmir fruit growers pitch for crop insurance

Bashir Ahmad Basheer, Chairman of the umbrella body representing all fruit growers associations in the Valley, has outlined a series of key demands while warmly welcoming PM Modi's visit.

"A major demand is the introduction of a Market Intervention Scheme (MIS) to provide price support for "Grade C" apples and fallen/damaged fruit. The growers have also sought implementation of a comprehensive crop insurance scheme," he said.

Highlighting the high production costs, Basheer said the 18% GST levied on insecticides, pesticides, fungicides, fertilizers and cardboard packaging materials is severely impacting the industry. He requested that GST rates on these essential inputs, including agricultural tools, tree spray oil and horticultural mineral oils, be reduced to the maximum possible extent.

Basheer said that the fruit growers have further demanded that tree spray oil be treated as an agricultural product to make it tax-free.

Basheer also pitched for the establishment of a dedicated horticulture estate on the lines of industrial estates in Jammu and Kashmir. He sought allocation of funds in the central and state budgets for setting up facilities like cold storage, canning factories, juice plants and other allied units to benefit local growers and traders.

CAIT Kashmir seeks trade revival package

The Kashmir chapter of the Confederation of All India Traders (CAIT) has sought the Prime Minister's intervention for a focused revival package for the Valley's trading community.

"These developmental projects will undoubtedly enhance the cultural and spiritual heritage of Jammu and Kashmir while stimulating economic growth and employment opportunities," said Peer Imtiyaz Hassan, Secretary General CAIT Kashmir. "However, it is equally crucial to provide targeted support to revive trade and commerce, which has been adversely impacted over the years."

The proposed package, according to CAIT Kashmir, should include measures to ease financial burdens, facilitate access to credit, incentivize investment, and create an enabling environment for businesses to thrive. This comprehensive approach is seen as vital for the overall economic revival of the region.

Imtiyaz expressed optimism about the future of Jammu and Kashmir. He reiterated CAIT Kashmir's commitment to working closely with the government and stakeholders to realize Kashmir's full potential, fostering prosperity and inclusivity for all residents.