Kashmir Impulse Desk

Srinagar, April 15 

Chief Minister Omar Abdullah said on Wednesday the government is preparing a new industrial incentive policy aimed at strengthening investment and ensuring benefits reach businesses on the ground.

Speaking at the inauguration of the ‘Know Your Artisan’ exhibition organised by the Department of Handicrafts and Handloom at Kashmir Haat, CM Omar said the policy was being shaped through consultations with both prospective investors and existing industrial units.

“Feedback is being taken from those planning to set up industries as well as those already operating, so that incentives are effective at the grassroots level,” he said, adding that top-down measures often fail to translate into tangible gains for workers and entrepreneurs.

The CM also highlighted the role of Kashmir’s traditional crafts sector, urging tourists and locals to visit the exhibition showcasing products such as Kani and Pashmina shawls, chain stitch, copperware, wood carving and papier-mâché.

Jammu and Kashmir’s existing industrial framework, including the Industrial Policy 2021-30 and central schemes, offers capital investment incentives ranging from 30 percent to 50 percent, capped at Rs 7.5 crore, as part of efforts to position the region as a manufacturing hub.

CM Omar said the upcoming policy is expected to include goods and services tax-linked incentives for up to 10 years, interest subsidies and support for backup power generation, with a focus on manufacturing, services and handicrafts. 

Special emphasis will be placed on micro, small and medium enterprises and women-led ventures.

He also pointed to the start of the spring tourism season in Kashmir and said the administration was working to expand visitor experiences beyond attractions such as the Indira Gandhi Memorial Tulip Garden, which was closing for the season.

Expressing concern over the decline of traditional marketplaces, the CM said more than 80 shops in a heritage market area had shut over time. 

“We need to understand where the artisans have gone and how to bring them back into the system,” he said.