One year ago, the J&K Trade Promotion Organisation drafted what was touted as a breakthrough-the J&K Procurement Preference Policy for Micro and Small Enterprises (MSMEs), 2024. It promised to reshape the industrial landscape of the Union Territory, finally providing local entrepreneurs a level playing field against outside competitors. On paper, it was bold and ambitious: 30% mandatory procurement from J&K-based units, removal of barriers like Earnest Money Deposit (EMD) and tender fees, preference margins for pricing, and targeted support for SC/ST and women-owned enterprises. Yet, twelve months later, the draft remains buried in files, awaiting approval from the Industries and Commerce Department. This delay is not just administrative-it is existential. For J&K’s MSMEs, survival has always been a fragile equation, balanced between geography, security challenges, and lack of access to central markets. The absence of a notified policy means that every passing day is another lost opportunity, another contract bagged by suppliers from outside the region, and another blow to struggling enterprises that are already operating on the margins.
Unlike MSMEs in other parts of India, J&K entrepreneurs operate under compounded constraints. The region lies at the farthest end of the country, physically distant from large consumer hubs. Add to this the fragile logistics caused by frequent road closures, power outages, and disruptions from natural disasters such as floods and landslides. Even in stable times, transporting goods in and out of J&K is far costlier than in mainland states. Security issues further reduce predictability for investors and buyers alike. While the central and UT Governments have rolled out industrial schemes, the harsh reality remains that very few large industries have set up units in J&K. Local enterprises find themselves as late entrants to national markets, with limited penetration and negligible brand visibility. In an economy where bulk production ensures competitive pricing, J&K industries face a double handicap: small production runs coupled with limited buyers. Without institutional support, their cost structures can never compete with large suppliers from outside the region.
It was against this backdrop that the Procurement Preference Policy was conceived. The Trade Promotion Organisation (TPO) understood that unless local units were given a preferential space in Government procurement, their survival would remain in question. The draft policy offered not charity, but a structured framework rooted in competitiveness and fairness-relaxations in EMD, assured procurement quotas, transparent bidding, and an emphasis on inclusivity. Had it been notified last year, many struggling units could have sustained themselves through assured orders from Government departments, aided institutions, and PSUs. Instead, the file continues to gather dust despite the fact that similar preferential policies exist in almost every other state.
The Government’s silence is proving costlier than inaction. Drafting a policy, putting it in the public domain for stakeholder comments, and then failing to act undermines the credibility of governance itself. Entrepreneurs were led to believe that support was around the corner, only to discover that promises remained confined to press notes. This lingering inaction also perpetuates the cycle of industrial underdevelopment in the UT. Moreover, the timing of this delay is especially damaging. The second half of the financial year-when Government departments typically undertake maximum procurement-is about to begin. If MSMEs are not integrated into this procurement cycle, another year will be lost.
Transparency in industrial policy must be the first principle of governance. If the Government cannot finalise a policy even after a year of consultations, it owes entrepreneurs an explanation. Local MSMEs are asking for an enabling framework to survive their infancy and compete on merit. Every delay pushes them with more constraints, leaving behind unemployed youth and wasted investments. At this tough juncture, bureaucratic indecision is the last thing they can afford. The Government must recognise that MSMEs are not just businesses-they are employment generators, value creators, and stabilisers of the local economy. Once operational, it will signal to the business community that the Government values and supports local enterprises. J&K cannot afford to let this policy become another case study in broken promises. The stakes are high, and the timing is critical.
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