Srinagar, Oct 26: The Kashmir chapter of the PHD Chamber of Commerce and Industry (PHDCCI) has called for policy safeguards, preferential government procurement and tax incentives to protect local entrepreneurs from competition with businesses from outside Jammu and Kashmir.
The demand was raised at a members’ meet held at Amarsingh Club, where the Chamber welcomed its reappointed leadership and discussed challenges facing local enterprises, including the need for a supportive industrial policy and measures to improve the ease of doing business.
A P Vicky Shaw, Chairman of PHDCCI Kashmir, and Co-Chairs Himayoun Wani and Javaid Anim were felicitated on their reappointment.
The Chamber also proposed nominating convenors to form an expert committee to address sector-specific issues. The nominations will be finalised at the next meeting.
Addressing the gathering, Shaw said the Chamber was awaiting the new industrial policy and guidelines on ease of doing business.
“We are eagerly waiting for the new industrial policy and guidelines for the Ease of Doing Business policy. The Chamber will meet the administration and take up the issues, bringing to them the plight of each and every sector as per the domain,” he said.
A major part of the deliberations focused on the need to strengthen the local business ecosystem, particularly as limited government employment opportunities have prompted more young people to explore entrepreneurship.
Members argued that Jammu and Kashmir’s relatively small economy and the limited scale of many local enterprises made them vulnerable to competition from larger businesses with greater financial and market resources.
The Chamber called for a legislative framework to provide local enterprises with preferential access to government procurement, along with suitable tax incentives and other safeguards. Drawing a comparison with Ladakh, members demanded that government tenders be reserved for agencies based in Jammu and Kashmir.
They also urged political parties across the spectrum to work towards legislation that would strengthen local businesses and expand economic opportunities for young people.
Citing procurement policies in other states and Union Territories, the Chamber highlighted several models that it said could inform a framework suited to Jammu and Kashmir.
These included Rajasthan’s reported provision for splitting orders between the lowest bidder and local micro and small enterprises (MSEs), subject to price-matching conditions; Mizoram’s price preference for eligible local MSEs; Bihar’s provision for local bidders ranked L2 or L3 to match the lowest bid in specified tenders; and Tamil Nadu’s relaxations in eligibility requirements and fees for certain categories of bidders.
Members also cited Ladakh’s reported practice of reserving certain tenders for local agencies.
The Chamber said such measures could include price preferences, allocation of portions of procurement orders to local enterprises and relaxed eligibility criteria, rather than an outright ban on businesses from outside the Union Territory.
PHDCCI Kashmir maintained that local enterprises needed time and policy support to strengthen their competitiveness and build capacity to compete with larger businesses on an equal footing. It also expressed concern that the region was lagging in adapting to changes associated with the industrial revolution.
The meeting concluded with members calling for a coordinated effort to press the administration and political parties for measures aimed at improving the competitiveness and long-term economic security of local enterprises.
