KCCI flags trade, industry concerns in meeting with parliamentary panel

A delegation of the Kashmir Chamber of Commerce and Industry (KCCI), led by Senior Vice President Ashiq Hussain Shangloo and Joint Secretary General, Umer Nazir Tibetbaqal held a constructive and wide-ranging meeting today with the Parliamentary Standing Committee on Commerce.

It was headed by its Chairperson, Dola Sen. The meeting, part of the committee’s visit to the Union Territory, was attended by Members of Parliament including Renuka Chowdhury, Awasthi Ramesh, Yusuf Pathan, Dr Shiv Pal Singh Patel, Sadanand Mhalu Shet Tanavade, Santosh Panday, Prasun Banerjee, and Dr Prashant Yadaorao Padole, among others.

The KCCI delegation presented a detailed memorandum, highlighting pressing concerns and offering recommendations aimed at strengthening commerce, trade, industry, and exports in Jammu & Kashmir.

Ease of doing business

The delegation expressed concern that despite the Government of India’s emphasis on Ease of Doing Business, entrepreneurs in J&K continue to face bureaucratic delays and cumbersome procedures.

Approvals for business operations take several months, and hoteliers must secure multiple no-objection certificates (NoCs) from different departments. Often, by the time one NoC is obtained, another has expired, creating an endless cycle of procedural hurdles.

KCCI urged the Committee to push for a genuine single-window system implemented in both letter and spirit.

Industrial incentive scheme

For the first time in decades, Jammu & Kashmir is without an operational industrial incentive scheme.

The earlier ₹28,400 crore New Central Sector Scheme was exhausted by September 2024, and the J&K Government has sought an additional ₹75,000 crore.

KCCI stressed that the new scheme should reserve at least 25 percent quota for local entrepreneurs to ensure inclusive growth.

Warehousing and logistics

While extension of train services to Kashmir is welcome, the absence of a logistics park and warehousing hub continues to hurt trade. The vulnerability of NH-44 often leads to heavy losses, especially for fruit growers whose consignments rot when stranded. KCCI recommended the establishment of a logistics park and the introduction of additional parcel trains, particularly during fruit harvest and winter months.

Preferential procurement policy

The Chamber pointed out that despite the existence of a Preferential Procurement Policy, its diluted implementation has deprived local manufacturers of contracts in favour of traders. KCCI demanded strict prioritisation of local units to protect J&K’s industrial base.

Handicrafts and export promotion

Highlighting the decline of handicraft exports from ₹1,162 crore in 2023–24 to ₹733 crore in 2024–25, KCCI urged targeted interventions. Recommendations included:

Establishment of warehousing facilities abroad, including Bharat Mart in Dubai.

Recognition of J&K as a focused region under the Export Promotion Mission.

Establishment of an Inland Container Depot (ICD) in Kashmir.

Reintroduction of the 3% interest subvention on export finance.

Information Technology and Electronics

The IT sector in Kashmir has significant potential but remains underdeveloped. KCCI recommended participation of IT startups in global trade fairs and inclusion of Kashmiri entrepreneurs in official delegations to help integrate them into the global digital economy.

Testing laboratories and looms

KCCI demanded that the new Pashmina fibre testing lab at SKUAST-K be accredited with NABL and the Wildlife Department, reducing reliance on facilities in Dehradun. The Chamber also requested the distribution of at least 500 modernised looms to artisans within 2025 to boost productivity.

Gold standard pashmina brand

On the Ministry of Textiles’ proposal for a Golden Pashmina Brand, KCCI welcomed the initiative but strongly opposed dilution through percentage mixes. The Chamber insisted that only 100 percent handmade Pashmina should be certified, to preserve its centuries-old authenticity.

CIBIL scores and credit access

The delegation also raised concerns over entrepreneurs being denied credit due to low or erroneous CIBIL scores. Many businesses in J&K, repeatedly disrupted by conflict and natural calamities, are penalised despite being viable today. KCCI recommended a government-backed third-party verification mechanism to reassess such cases and urged the Reserve Bank of India and banks to create a relaxation framework for J&K, ensuring fairer credit access.

The Kashmir Chamber of Commerce and Industry expressed optimism that the Standing Committee on Commerce will consider these recommendations with seriousness and help shape a resilient economic future for Jammu & Kashmir.