The policy will transform
J&K from ‘Aspirational’ to Industrially Advanced’ region
SRINAGAR: The hallmark of any
developed region is the fine balance between manufacturing, services and
agriculture sectors. The industrial landscape of the UT of J&K is dominated
by MSME as it contributes about 8% to the GSDP and employs the largest number
of people in 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 over the
previous industrial policies. Combined with the incentives offered under “New
Central Scheme for Industrial Development of Jammu and Kashmir” notified by
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.
The policy specifically
promises an era of socio-economic development in the region, catering to the
aspirations of the people of Jammu and Kashmir. This shift is directed towards
ensuring the transformation of J&K from an ‘aspirational’ to an ‘industrially
advanced’ region. The policy aims at driving industrial growth in an
environment of stability wherein dynamic competition is allowed for the
betterment of traditional core sectors such as Agriculture and allied sectors,
food processing, tourism, health, pharmaceuticals etc.
To promote Ease of Doing
Business in J&K, the ‘Single-Window approach’ of the New Industrial Policy
is envisaged to streamline the government’s role as a ‘facilitator, partner,
provider, collaborator and promotor’. With conducive ease of doing business,
setting up of Land Bank and handholding of MSMEs, J&K is all set to
position itself as a lucrative investment destination in India over next 10
years.
The new policy also outlines
various themes of intervention in the domain of training in ITIs, industry and
university collaboration and to encourage investment in capacity building by
providing adequate financial support. The proposed Entrepreneur and Skill
Development Fund shall prove to be a game-changer. The policy aims at “minimum regulation
and maximum facilitation” keeping in mind the unique geographical location and
environmental dynamics of UT. Environment Protection forms the bed-rock of the
new policy and thus in consonance with the idea of “sustainable development”.
The new policy aims at promotion of new industries in the UT of J&K in
fields of IT, Healthcare and Pharmaceuticals, Agriculture and Food Processing,
Education and Skill Development etc. At the same time, it also sets a holistic
plan for revival of sick units with adequate regulatory support and financial
incentives. “Zero Effect- Zero Defect” productivity is very much achievable in
light of the new industrial policy.
In brief it is evident that
the potential of new industrial policy in terms of job creation, promotion of
innovation and entrepreneurship, balanced development of all the regions of
J&K and improving the quality of life is all set to be realised with the
cluster-based approach and optimum realisation of resources.
‘Tradition, Growth and Transformation'-the slogan of new industrial policy is all set to herald a new era of growth and prosperity for the UT of Jammu and Kashmir.
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