Excelsior Correspondent
Srinagar, Mar 19: The Kashmir Chamber of Commerce and Industry (KCCI) has raised concerns over inadequate financing mechanisms for Micro, Small, and Medium Enterprises (MSMEs) and startups in Kashmir with representatives of the Reserve Bank of India (RBI).
A KCCI delegation, led by senior vice president Ashiq Hussain Shangloo, included Secretary General Faiz Bakshi and Executive Committee members Gowhar Maqbool and Dr Touseef Ahmad Bhat.
They met with RBI Regional Director to highlight the persistent gaps in financial support for MSMEs and startups across Kashmir.
KCCI emphasized widespread frustration among local entrepreneurs over the restrictive lending policies of banks and financial institutions.
The delegation pointed out that while banks frequently cite RBI guidelines to justify procedural hurdles, many of these requirements contradict Supreme Court directives on business financing accessibility and warrant urgent clarification.
Highlighting Kashmir’s alarming 32.8% unemployment rate in the urban 15-29 age group, as reported by the Ministry of Statistics and Programme Implementation (MoSPI), KCCI called for extraordinary measures to boost entrepreneurship.
The delegation underscored that startups and MSMEs face severe operational challenges due to what they described as a “practically non-existent ease of doing business environment.”
KCCI also flagged a stark disconnect between officially reported MSME development and employment generation statistics and the actual ground realities.
“This discrepancy, they argued, raises serious concerns about policy implementation and calls for immediate intervention from financial regulators.”
Citing findings from the Parliamentary Standing Committee, the Chamber criticized banking institutions for failing to support Kashmir’s emerging business ecosystem.
Addressing concerns over CIBIL score assessment methodologies, KCCI advocated for a contextual evaluation mechanism that considers Kashmir’s unique economic landscape.
Additionally, KCCI raised concerns over the “miserly approach” of public sector banks in Kashmir, whose lending towards the priority sector remains low.
RBI Regional Director Chandrashekhar Azad assured the delegation that their concerns would be communicated to the central office.
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