KCCI seeks GST relief for Kashmir handicrafts, presents industrial revival plan to Parliamentary Panel

Srinagar, Jan 7: The Kashmir Chamber of Commerce & Industry (KCCI) made a presentation to the Parliamentary Standing Committee on Industry in Srinagar today, advocating for reduced GST rates on traditional Kashmiri shawls and broader economic reforms. The committee, headed by Mr. Tiruchi Shiva, met to address critical issues in the region's MSME, employment, handicrafts, and industrial sectors.

The KCCI delegation strongly opposed the proposed GST increase from 12% to 28% on shawls costing over Rs. 10,000, emphasizing that artisan wages constitute 80% of production costs. They called for reducing the tax rate to 5% to protect artisan livelihoods.

Addressing the region's highest unemployment rate in India, the KCCI highlighted the need for enhanced support through the Prime Minister's Employment Guarantee Program (PMEGP), particularly for artisans and women workers. They proposed increasing National Capital Investment Support Scheme (NCSS) funding from `28,400 crores to `75,000 crores, with 25% earmarked for local entrepreneurs.

The Chamber called for streamlining multiple overlapping industrial policies and improving infrastructure development in industrial estates. They advocated for mandatory local MSME procurement in government contracts and establishing skill development centres within industrial estates.

To address struggling businesses, the KCCI proposed creating a revival corpus and implementing a special one-time settlement scheme through banks. They emphasised the need for improved MSME financing and sector-specific policies for industries like floriculture, organic farming, and IT.

The presentation also covered proposals for specialized industrial estates, enhanced IT infrastructure, and a 10-year procurement preference for local industries. The Parliamentary Committee members committed to conveying these recommendations to the appropriate authorities.