The Jammu and Kashmir federal government’s recognition of 6,576 stressed out business for possible revival has actually brought into focus the obstacles challenging regional makers, consisting of high transport expenses, market competitors and interruptions triggered by extended durations of discontent.
Chief Secretary Atal Dulloo has actually directed the Industries and Commerce Department to finish diagnostic profiling of the recognized business and prepare actionable revival strategies under the MSME Health Clinic effort.
The federal government’s evaluation, nevertheless, does not state that the 6,576 business have actually closed down or are all running losses. The systems have actually been categorized as “recoverable” and determined for additional evaluation and targeted intervention.
Individually, 106 business have actually been categorised as “vulnerable to persistent illness,” a more major category under the workout.
According to the federal government’s evaluation, 3,42,261 MSMEs are signed up in Jammu and Kashmir, of which 2,94,014 have actually been evaluated. As numerous as 2,87,332 systems, or 97.7 percent, were categorized as steady, while 6,682 business were discovered to need active intervention.
The effort has actually up until now included 581 factory gos to and the preparation of 317 diagnostic reports. Thirty-four vital rehab cases have actually likewise been authorized by the District-Level Apex Committee (DLAC).
Market agents, on the other hand, have actually indicated structural and policy-related obstacles that they state have actually impacted the competitiveness of regional producing systems.
Shahid Kamili, president of the Federation Chamber of Industries Kashmir (FCIK), stated the abolition of toll tax at Lakhanpur had actually contributed to the competitive pressure on markets in Jammu and Kashmir.
He stated makers in Kashmir deal with greater expenses due to the fact that basic materials need to be carried over fars away.
According to him, the entry of items made outside Jammu and Kashmir at relatively lower costs has actually made it tough for regional systems to contend in the market.
Kamili likewise pointed out the effect of the lockdowns in 2016 and 2019, followed by the Covid-19 pandemic, on commercial activity in the area.
He stated the elimination of earlier safeguards and modifications in the tax system had actually additional impacted regional producers.
“Kashmir lies at the butt of the nation, and the expense of carrying basic materials is high. After the abolition of toll tax at Lakhanpur, items from outdoors ended up being more competitive, putting extra pressure on regional makers,” Kamili stated.
He stated that 18 percent GST has actually likewise put extra problem on the little and medium scale business.
“The federal government ought to develop a robust commercial policy to secure regional markets,” Kamili included.
Released on September 22, 2026