PHDCCI-K pins hopes on budget for impetus, revival of economy in J&K

Srinagar, Dec 10 (KNS): After having battled Covid Induced disruptions the PHDCCI Kashmir has pinned its hopes on the Budget for impetus and revival of the economy in Jammu and Kashmir. 

In a statement, issued to Kashmir News Service (KNS), PHDCCI-Kashmir region chairperson, Baldev Singh Raina has said that in order to bring J&K economy out of the present economic slowdown, it was essential to enhance investments in manufacturing, services, infrastructure, horticulture and handicraft and rural development projects so that additional purchasing power gets pumped into the local economy. 

He said that this in turn would provide a demand push to the J&K economy and enable it to attain a higher growth rate.

Emphasising that bold initiatives are needed to restore confidence of trade, industry and the common men, Raina called for liberalisation of conditions for facilitating inflow of Investment and Economic Bailout for Trade and Commerce of J&K by concession in RBI guidelines and Structured Package for Existing Industries. 

PHDCCI-Kashmir has suggested to the Union Territory and Central government to improve the overall climate for enterprise both in industry and agriculture, reform macro-economic policy, ensure reduction in fiscal deficit and hike investment in education, Handicraft, Handloom, Health, Infrastructure and Community development, Nutrition with suitable shift in priorities.

Highlighting the need for taking crucial actions in a number of key areas to obtain full benefits of the reforms carried out by J&K Administration so far, Raina said that such measures would help unleash the latent energies in agricultural, industrial and commercial sectors. 

“We put forth certain suggestions for the upcoming budget that majorly includes waive off the Amnesty tax amount of Arrears in the old tax regime (VAT), keeping in view the continuous business loss for the last several years.Click Here To Follow Our WhatsApp ChannelThe pending arrear amount is being surcharged with penalties and on actual it won’t be that much as would have been projected. The budget provision for these arrears would be a special relief for trading community of J&K.” 

The statement reads that an attempt should be made in the upcoming budget to ensure that loans taken by women, Artisans, Weavers, Labourers from Micro finance institutions (MFI) are waived, to regulate and to create the effective mechanism.

“We had proposed that the government should introduce a law with an aim to protect and relieve the economically vulnerable groups and individuals from undue hardship of interest rates and coercive means of recovery by Micro finance institutions (MFI) or money lending agencies or organisations.”

While applauding the government's intention to encourage Industrial Investments with mega projects and increasing the scale of operations in Jammu & Kashmir, Raina said that the government also has to very closely study why the Existing Industry has not really succeeded in the past. 

“It is very crucial to avoid errors of omission and commissions in the past. Otherwise, this will remain one better intended scheme which fails to lift the fortunes of the Industry Development of J&K.”

“We hope that the UT government will place a budget that will be extremely well crafted, and will provide fresh stimulus for economic growth of J&K, a special focus on social and Job oriented sectors and the promise of a more inclusive future," Raina said. (KNS)

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