Srinagar, Feb 20: The hallmark of any developed region is the fine balance between the manufacturing, services and agriculture sectors. The industrial landscape of the UT of J&K is dominated by MSME as it contributes about 8 percent to the GSDP and employs the largest number of people in the services and manufacturing sectors. Around 25000 MSMEs are operational in the UT employing around 90% of the industrial workforce here.
In this backdrop, the Jammu and Kashmir Industrial Policy (JKIP)-2021-30 is a welcome change from the previous industrial policies. Combined with the incentives offered under “New Central Scheme for Industrial Development of Jammu and Kashmir” notified by the Department for Promotion of Industry and Internal Trade (DPIIT), Government of India, in 2021, the industrial ecosystem in J&K is set to witness a paradigm shift.
The new policy is different from the industrial policies that were in operation prior to this policy. The dispensations of the erstwhile J-K state had adopted industrial policies from time to time (i.e. 1995, 1998 & 2004) the latest being Industrial Policy, 2016. To support the old industrial policies, the Indian government sanctioned packages of incentives for the industrial development of the erstwhile state at different intervals namely Central Capital Investment Scheme, 2002, 2012; Scheme of Budgetary Support under Goods and Services Tax regime and JKIDS 2018 but the industrial sector in Kashmir failed to compete with other parts of the country.
According to the new industrial policy, which has come into effect on April 1, all industrial units coming into commercial production as well as the existing units undertaking substantial expansion, shall be entitled for incentives under this policy.
The new policy has a spending outlay of Rs 28,400 crore (Rs 284 billion), the largest incentive to date, on the industrial development of Jammu and Kashmir for the next 15 years. It is expected to generate an investment of Rs 20,000 crore (Rs 200 billion) and employment of 4.5 lakh over the plan period.
This is the first block-level development project that intends to undertake the process of industrialisation at the very grassroots level using the local resources, skill, and talent available domestically.
The policy specifically promises an era of socio-economic development in the region, catering to the aspirations of the people of Jammu and Kashmir. The policy has been aimed to prioritise the aspirations of the entrepreneurs while putting in concerted efforts for making Jammu and Kashmir the most investor-friendly union territory. It also encourages and facilitates people who want to join the wagon of the industrial sector in Jammu and Kashmir.