Excelsior Correspondent
JAMMU, Mar 17: Federation of Industries Jammu (FOIJ), representing more than 3,000 industrial members and over 5,000 MSMEs across the Jammu region, has submitted a detailed memorandum to the Chief Secretary of the Union Territory of Jammu & Kashmir in a meeting attended by the Chairman Virendra Jain and Co-Chairman Lalit Mahajan of FOIJ, highlighting critical issues affecting the survival and growth of local Micro/Small Industrial sector.
FOIJ emphasized that industries in Jammu & Kashmir operate under unique geographical and logistical challenges, resulting in higher input costs and elevated production expenses. The Federation urged the government to ensure a level playing field and strengthen the “ease of doing business” environment in the region.
The Federation stressed the importance of continued fiscal and marketing support for local industries, including, turnover incentives, working capital subvention, marketing support and purchase preference, development and promotion of anciliarisation.
FOIJ noted that many local MSMEs depend significantly on Government procurement due to the region’s geographical limitations and restricted market access. The Federation urged the government to restore and strengthen purchase preference policies to support local manufacturers supplying to government departments. It also raised concerns regarding the inverted tax structure under the GST regime, where higher GST on raw materials compared to finished goods has adversely affected several industries.
The Federation urged the government to incorporate unattended incentives in the proposed amendments to the J&K Industrial Policy 2021–30, including turnover incentives, working capital support, marketing assistance, and anciliarisation development. It emphasized that these incentives are essential for the survival and sustainability of micro and small industrial units in the Union Territory. FOIJ requested that “Ease of doing business” be implemented in true letter and spirit.
FOIJ expressed concern over restrictions imposed on turnover-based incentives tied to the financial years 2018–19, 2019–20, and 2020–21. Such riders limit growth opportunities for industrial units and should be reconsidered.
FOIJ requested the Chief Secretary Atal Dulloo to formulate a comprehensive Industrial Policy with a thrust on the survival of the existing industry by providing Fiscal Incentive alongwith the package to attract new investment in the industrial sector.
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