KCCI pushes for policy overhaul to reboot Kashmir’s MSME sector
Srinagar, Jul 25: A delegation of the Kashmir Chamber of Commerce and Industry (KCCI), led by its President Javid Ahmad Tenga and Joint Secretary General Umar Nazir Tibetbaqal, met Secretary, Ministry of Micro, Small and Medium Enterprises (MSME), Government of India, S.C.L. Das (IAS), to discuss critical issues affecting the growth and sustainability of the MSME and handicrafts sectors in Jammu and Kashmir.
At the meeting, President Tenga flagged the alarming decline in handicraft exports from the region, which have dipped to ₹733 crore in 2024–25.
He said the Chamber aims to scale exports to ₹4,000 crore over the next four to five years in line with the Prime Minister’s \$5 trillion economy vision. He urged the Ministry to facilitate the participation of J&K-based exporters in major global trade fairs, including Global Village Dubai. The Secretary welcomed the proposal and directed J\&K’s Industries & Commerce Department to obtain priority fair details from KCCI and initiate support.
KCCI also called for the establishment of sector-specific MSME clusters to support traditional industries and emerging sectors such as food processing, herbal products, and IT services. The Chamber submitted a detailed memorandum recommending common infrastructure in areas like copperware, papier-mâché, carpet weaving, and Pashmina finishing.
Addressing financial barriers, the delegation raised the issue of restricted credit access caused by poor CIBIL scores among MSMEs, often due to structural disruptions. It requested a one-time CIBIL score relaxation and region-specific financial inclusion norms for Kashmir.
Environmental and tourism-related concerns were also highlighted, with proposals for MSME-funded Common Effluent Treatment Plants (CETPs) in industrial zones and Sewage Treatment Plants (STPs) in key tourist destinations like Pahalgam, Gulmarg, and Sonamarg. The Secretary appreciated the STP proposal, calling it a “good initiative” for sustainable tourism.
KCCI further suggested creating a common laundry and dry-cleaning facility for the hospitality sector. The Secretary informed the delegation that the Ministry has a ₹10 crore provision for such infrastructure and assured support.
Other proposals included solarisation of industrial units to cut energy costs, development of flatted factory complexes for IT/service sectors, strengthening startup incubation and funding mechanisms, and a revival package for stressed MSMEs. The Chamber also called for increased allocations to the J\&K Industries Department to enhance scheme implementation.
Secretary Das appreciated the well-documented and comprehensive set of proposals and assured follow-up with the J\&K administration. KCCI expressed gratitude for the constructive dialogue and reaffirmed its commitment to working with the government for inclusive economic revival in the region.
