Clarifications sought on implications of proposed incentives
*Strategy aims to achieve export target of Rs 10,000 cr
Mohinder Verma
JAMMU, June 25: The finalization of the Jammu and Kashmir Export Policy is set to take more time as the Finance Department (FD) has raised some vital observations during the inter-departmental consultation process. These observations pertain primarily to the financial implications and sustainability of several proposed incentives under the draft policy.
Follow the Daily Excelsior channel on WhatsApp
In order to encourage and support the exporters of Jammu and Kashmir by providing them incentives, subsidies, marketing support and creating export infrastructure, the Jammu and Kashmir Trade Promotion Organization (JKTPO) drafted a “Jammu and Kashmir Export Policy-2024”.
Through a notice dated January 1, 2025, the Industries and Commerce Department had placed the draft policy in the public domain. Accordingly, all the stakeholders including exporters, industry associations, experts and general public were requested to review the draft policy and provide valuable suggestions/inputs till January 30, 2025.
Following the conclusion of this stakeholder engagement process, the draft was formally submitted to the Finance Department for vetting and concurrence. However, according to official sources in the Finance Department, pointed observations were made-particularly concerning the fiscal sustainability, financial impact of proposed incentives and the overall funding mechanism outlined in the draft.
“The Finance Department has also sought to know whether the Industries and Commerce Department has conducted a comparative study of similar policies implemented in other States and Union Territories of the country”, sources told EXCELSIOR.
They further said, “currently, the Industries and Commerce Department is in the process of preparing a comprehensive response to the Finance Department’s queries. Until that exercise is completed and inter-departmental concurrence is secured, the final approval of the export strategy will remain pending”, adding “at present, no time-frame can be specified for approval and final notification of the policy”.
The vision behind formulating the J&K Export Policy is to harness the export potential of the Union Territory by leveraging its core strengths and strategic advantages. “The goal is to transform J&K’s economy into a competitive, export led growth model and make it heaven for exports drawing on its global reputation as the heaven on earth”, sources said.
“Through this policy, J&K aims to achieve an export target of Rs 10,000 crores in next five years, leveraging both the core and emerging areas of exports by providing an effective institutional mechanism, conducive strategies, trade infrastructure and marketing assistance aimed towards facilitating exports”, sources said.
The policy will help in identifying potential sectors/products for promotion of exports; facilitating substantial incremental growth of export of products identified in the focus sectors by enhancing value addition and quality competitiveness and help in laying emphasis on boosting exports of unique and world-famous handicraft and handloom products and agri-commodities with special focus on GI tagged products.
Further, the Export Policy will help in developing new focus areas in exports such as Pharmaceuticals, Medical Devices, IT & ITES, Biotechnology, Electric Mobility etc.
The other objectives of the policy are to galvanize the districts as export hub by calling for an inclusive approach with focus on district-led export growth for boosting exports; encourage skill development and capacity building to improve competitiveness of the export units; promote innovation for export of new value added products; promote initiatives to enhance product quality and standards and support certification of products exported from the UT; promote entrepreneurship in the field of exports and facilitate whole-of-Government approach to improve export competitiveness of domestic exporters.
To achieve these objectives, the Government will formulate sector and product specific District Export Action Plans with specific hard and soft interventions, designed to be implemented in the medium and long-term for acceleration of exports. Further, the Government will revamp product-specific requirements pertaining to common facility center, processing center, raw material banks, skill development, design innovation, quality and standards etc in line with the product demand.
Follow our WhatsApp channel
