FOI Seeks Revival of MSME Sector in J&K; Urges Reimbursement and Procurement Support

New Delhi, Oct 18 (KNN) A leading industrial body, the Federation of Industries (FOI), on Thursday sought the intervention of Jammu and Kashmir Chief Minister Omar Abdullah to help revive the struggling micro, small, and medium enterprises (MSME) sector in the Union Territory.

Congratulating the National Conference-led government and the chief minister on forming the new administration, FOI Chairman Lalit Mahajan expressed optimism about the future of local industries under the new regime.

“The industrial community in Jammu has high hopes from this government and anticipates urgent measures to strengthen the MSME sector,” Mahajan said.

Mahajan noted that many existing MSME units, predominantly run by local entrepreneurs, are under pressure due to the dilution of fiscal incentives and competition from new businesses established under the New Central Sector Scheme (NCSS). He emphasised the need to protect these enterprises to prevent their collapse.

During his meeting with Abdullah, Mahajan pressed for long-term fiscal incentives and highlighted several pending issues faced by the sector. “We urge the government to extend financial incentives for the next 10 years to ensure the sustainability of existing industrial units,” he added.

A key demand raised by Mahajan was the reimbursement of SGST, CGST, and IGST based on each unit’s turnover to ease the financial burden on these enterprises.

He also requested the government to offer marketing support by giving procurement preference to local MSME units across various departments.

"It is critical to resolve these issues promptly to restore the confidence of the existing industrial community," the FOI said in a statement. “We appeal to the chief minister to revive the Industrial Advisory Committee and instruct the industries department to review the J&K State Industrial Policy.”

Mahajan stressed that without swift action, the competitive disadvantage faced by older MSME units could worsen. “Addressing these challenges is essential for the survival of local units and ensuring their fair participation alongside new entrants in the industrial landscape.”

The FOI reiterated the need for stronger fiscal policies to ensure that the region’s industries, rooted in local expertise and workforce, continue to thrive.

(KNN Bureau)