More than 1,820 MSMEs shut shop in J&K, over 7000 jobs lost in 5 years

Srinagar, Dec 14: Jammu and Kashmir has witnessed the closure of more than 1,820 Micro, Small and Medium Enterprises (MSMEs) over the past five years, leading to the loss of 7,066 jobs, according to official data available under the Udyam registration portal.

The figures, covering the period from July 1, 2020, to November 30, 2025, underline a deepening crisis in the region’s small business sector, which is a key source of employment and local economic activity.

The year-wise breakup shows a consistent and accelerating rise in MSME shutdowns in the Union Territory. In 2021–22, a total of 51 MSMEs were deregistered, resulting in 192 job losses. While the numbers were relatively modest in the immediate aftermath of the COVID-19 pandemic, the trend quickly worsened. In 2022–23, the number of closures more than doubled to 121 units, leaving 483 people without work.

The pressure on MSMEs intensified further in 2023–24, when 241 enterprises shut down, causing 869 job losses. This marked a clear shift from isolated business failures to a broader structural stress across micro and small enterprises, many of which operate on thin margins and have limited financial buffers.

The data shows that the situation deteriorated sharply over the last two years. In 2024–25 alone, 566 MSMEs ceased operations in Jammu and Kashmir, leading to the loss of 2,077 jobs.

The ongoing 2025–26 period (up to November 30) has already recorded the highest number of closures so far, with 842 MSMEs shutting down and 3,445 workers losing their livelihoods. Together, the last two years account for nearly 77 per cent of all MSME closures and job losses recorded in the Union Territory during the five-year period.

Cumulatively, Jammu and Kashmir has seen 1,821 MSMEs shut down and 7,066 jobs wiped out since July 2020. Given the dominance of micro enterprises in the region, each closure often affects entire families that depend on small units engaged in manufacturing, trade, handicrafts, tourism-linked services and agro-based activities.

Reacting to the figures, President of the Kashmir Chamber of Commerce and Industry (KCC&I), Javid Ahmad Tenga, said the data reflects the harsh ground realities faced by entrepreneurs. “MSMEs are going through extremely difficult conditions, especially in Jammu and Kashmir, and they urgently need sustained handholding and institutional support. Access to credit must be made hassle-free and timely, without procedural bottlenecks, so that small entrepreneurs can survive, stabilise and grow. Strengthening MSMEs is essential not only for economic revival but also for protecting jobs and livelihoods,” he said.

At the national level, official data shows that 1,20,933 MSMEs were deregistered across India during the same period, resulting in job losses for 7,80,833 people. However, this needs to be seen against the backdrop of massive registrations, with 7,22,32,207 MSMEs registered nationwide between July 1, 2020 and November 30, 2025, following the revision of the MSME definition.

While MSME closures account for only about 0.17 per cent of total registered units nationally, stakeholders argue that such aggregate figures mask regional distress. In economically fragile regions like Jammu and Kashmir, even a few hundred closures translate into thousands of job losses, reduced household incomes and weakened local markets.

Trade bodies and industry representatives have repeatedly flagged issues such as restricted access to affordable credit, procedural hurdles, delayed payments, rising input costs, weak demand and infrastructure constraints as key factors driving MSMEs out of business. With closures accelerating in recent years, there is growing concern that without targeted policy intervention and effective handholding, the MSME sector in Jammu and Kashmir could face further contraction, deepening unemployment and economic vulnerability.