JAMMU, Oct 1: Jammu Kashmir Apni Party District President Jammu Urban Abhay Bakaya has urged the Government of India to undertake an immediate and comprehensive revision of the industrial policy for Jammu & Kashmir and introduce a stronger, more practical and investment-friendly incentive framework to attract new industries and protect existing industrial units.
Bakaya said that industrial development is not merely an economic requirement for Jammu & Kashmir but an essential component of employment generation, youth empowerment and long-term economic stability. The Union Territory cannot afford to lose valuable investment opportunities at a time when thousands of educated and skilled young people are looking for meaningful employment opportunities.
He said that Jammu & Kashmir faces unique geographical and logistical challenges which make the cost of industrial production considerably higher than in many other parts of the country. A large portion of the raw material required by industries has to be brought from outside J&K, while finished products often have to be transported to markets outside the Union Territory. This results in additional freight, logistics, inventory, transportation and working-capital costs.“An industry operating in J&K cannot be expected to compete on exactly the same terms as an industry located close to its raw-material sources and major consumer markets. The additional cost of logistics has to be recognised through a suitable incentive mechanism,” Bakaya said.
He pointed out that the Government of India’s existing industrial development framework for J&K itself recognises the need to offset the UT’s disadvantages and has provided incentives such as capital investment incentives, interest subvention and GST-linked incentives. The Central Sector Scheme has an overall outlay of ₹28,400 crore and is intended to promote investment and employment in J&K.
However, Bakaya said that the changing industrial environment demands a fresh assessment of the policy and its implementation, particularly with regard to freight costs, market access, working capital, power, land, infrastructure and the competitiveness of J&K-based enterprises.
Bakaya called upon the Centre and the J&K administration to consider revision and strengthening of the existing J&K Industrial Policy framework with a new-generation incentive package suited to present market conditions.Special freight/logistics assistance for transportation of raw materials into J&K and finished goods out of the Union Territory.Additional incentives for industries which generate substantial direct and indirect employment for local youth.
Stronger support for MSMEs, manufacturing units, food processing, pharmaceuticals, handicrafts, tourism-linked manufacturing, engineering, IT-enabled industries and other employment-intensive sectors.Special incentives for value addition to locally available raw materials and agricultural/horticultural products, so that J&K exports finished products rather than raw materials.
Development of plug-and-play industrial infrastructure with reliable power, water, roads, warehousing, common facilities and modern logistics connectivity.Easier access to working capital and affordable institutional finance, particularly for MSMEs.A mechanism for time-bound disbursement of approved incentives so that entrepreneurs are not burdened by prolonged delays.
Greater support for industrial estates and private industrial parks, including modern common infrastructure.Incentives for companies that establish skill-development and local employment programmes alongside their industrial units.A stronger framework for encouraging existing industrial units to expand, rather than focusing only on attracting new investors.Special encouragement for J&K-based entrepreneurs and investors from outside J&K willing to establish employment-generating manufacturing units in the UT.
Greater integration of J&K industries with national supply chains, e-commerce platforms, export markets and government procurement.Bakaya stressed that industrial policy must not be viewed merely as a package of subsidies. It should create an ecosystem in which an entrepreneur can establish, operate, expand and compete from Jammu & Kashmir without being structurally disadvantaged by geography.
He also welcomed the fact that the Union Government continues to provide financial support for industrial development in J&K. The Parliamentary Standing Committee on Commerce, in its 2026 report, noted increased requirements under the J&K industrial development scheme and recommended close monitoring to ensure smooth implementation and adequate funding.
“The objective should be to make Jammu & Kashmir a competitive industrial destination, not merely an investment destination on paper. Investors need certainty, competitive costs, timely incentives, modern infrastructure and access to markets,” Bakaya said.He further said that industrialisation would have a multiplier effect on the J&K economy by creating employment not only inside factories but also in transportation, logistics, warehousing, hospitality, construction, banking, professional services, retail and ancillary industries.
“Every new manufacturing unit creates an ecosystem around itself. If we can successfully attract industries to J&K, thousands of young people can find employment without having to leave the Union Territory in search of opportunities,” he added.
Bakaya appealed to the Prime Minister, Union Minister for Commerce & Industry, Union Finance Minister, Lieutenant Governor of J&K and the J&K administration to hold consultations with industry bodies, entrepreneurs and stakeholders and formulate a comprehensive revised industrial policy with a special focus on employment, logistics, investment and competitiveness.
“Jammu & Kashmir needs industries, industries need incentives, and our youth need jobs. A strong and practical industrial policy can connect all three objectives. The time has come for the Centre to give J&K a renewed industrial push and ensure that the next phase of development creates sustainable employment and a stronger economic base for the Union Territory,” Bakaya concluded.