Excelsior Correspondent
SRINAGAR, Apr 5: The Federation of Chambers of Industries Kashmir (FCIK) today expressed concern over growing economic stress in Jammu and Kashmir due to the ongoing West Asian conflict, and called for immediate Government intervention to protect the region’s industrial sector.
Highlighting sector-specific impacts, An FCIK spokesperson said that the export sector, particularly Kashmir’s handicrafts, has been severely affected, with consignments stalled at multiple stages and payments from overseas buyers delayed or deferred, slowing remittance inflows and disrupting production cycles. He said the horticulture sector is also under strain due to escalating transportation costs driven by rising fuel prices, eroding margins and affecting the competitiveness of perishable produce in national markets, while the tourism sector is beginning to experience fallout, with rising airfares and prevailing uncertainties leading to cancellations and weakening forward bookings.
The spokesperson said disruptions in remittance flows from the Gulf have compounded the situation, affecting household incomes and local consumption patterns, and warned that MSMEs, already operating under constrained conditions, are struggling to meet operational expenses, service debt, and sustain employment.
Describing the situation as an “economic exigency,” FCIK spokesperson called for immediate coordinated measures with the Government of India and the Reserve Bank of India, including regulatory forbearance for banks, enhanced credit support for MSMEs, and liquidity infusion, alongside sector-specific interventions such as freight and logistical support for exporters, transport subsidies for horticulture, and rationalization or capping of airfares to revive tourism.
“FCIK also sought financial relief measures including uniform interest concessions on loans, enhanced working capital limits, moratorium on repayments, suspension of coercive recovery under the SARFAESI Act, a transparent One-Time Settlement scheme, deferment of statutory dues, relief in power tariffs, a power amnesty scheme, and immediate clearance of pending Government payments to MSMEs, contractors, and suppliers to inject liquidity,” he said.
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