Jammu Kashmir MSMEs totally ignored in Union Budget 2018-19: BBIA

New Delhi, Feb 2 (KNN) Assessing the announced budget by the Finance Minister earlier yesterday in the parliament, MSME body Bari Brahamana Industries Association said that the budget has ignored the industrial sector of Jammu and Kashmir comprising primarily of the Micro, Small and Medium Enterprises (MSMEs).

“While going through Budget proposals, it has been observed that the Industrial Sector of J&K has been totally ignored while announcing the Budget proposals in spite of our repeated representations given for the grant of Fiscal Incentives which includes the Income Tax Holiday and other Incentives to attract the New Investment in the State which is very much necessary for creating employment opportunities for the Local Youths of the State”, BBIA said in a release.

The association lamented that due to locational disadvantage, surrounded by hostile neighbors like Pakistan & China, remoteness & poor connectivity, hilly terrain, poor infrastructure and shallow Markets make the industries at a much vulnerable position.

“Also factors including additional Cost of the Raw Material and dispatch of finished goods to other parts of the country resulting higher cost of production & other related expenses due to underutilization of production capacity which has resulted in low Economic activity, low Employment and low Income generation makes it difficult to compete with the market outside the state”.

It was further resolved that on one side Govt. of India has earmarked huge funds for Skill Development of the Youths but on other side no Incentives have been given to the Industrial Sector of J & K resulting the flight of Skill from the State to other parts of the Country.

Regarding the Rs.3794 Crores fund allocated to MSME Sector, Govt. of India should earmark funds for the Fiscal Incentives to the Industrial Sector of J & K which will attract the new Investment in the State, BBIA added. (KNN/DA)