JAMMU, Jul 17: The Federation of Indian Chambers of Commerce and Industry (FICCI), Jammu & Kashmir, has urged the Union Territory administration to extend the Turnover Incentive Scheme for intra-state sales by MSME units till March 31, 2037, warning that its discontinuation could severely impact the region’s industrial sector.
In a press release, Lalit Mahajan, Head of the MSME Committee, FICCI J&K, appealed to Lieutenant Governor Manoj Sinha, Chief Minister Omar Abdullah, and Deputy Chief Minister Surinder Kumar Choudhary, who also holds the Industries and Commerce portfolio, to intervene and continue the incentive as a crucial handholding measure for local industries.
FICCI stated that the existing Turnover Incentive Notification remained valid until March 31, 2026, but no proposal for its continuation has reportedly been included in the proposed amendments to the Industrial Policy 2021-30. The chamber expressed concern that the move has created uncertainty and resentment among MSME units dependent on intra-state sales.
Highlighting the importance of the scheme, FICCI said that nearly 90 to 95 per cent of local MSMEs rely on sales of finished products within Jammu and Kashmir. It noted that industries in the Union Territory already face challenges such as geographical disadvantages, limited market access, high raw material costs and stiff competition from outside suppliers.
The chamber urged the government to restore the turnover incentive for the period April 1, 2026, to March 31, 2037, stating that the measure would help sustain MSMEs, safeguard employment and strengthen the industrial ecosystem in Jammu and Kashmir.