Srinagar, December 10 (KNS): After battling Covid-induced disruption, PHDCCI Kashmir has placed its hopes in the budget for a boost and revival of the economy in Jammu and Kashmir.
In a statement to the Kashmir News Service (KNS), PHDCCI-Kashmir region president Baldev Singh Raina said that to pull J & K’s economy out of the current economic downturn, it was essential to increase investment in manufacturing, services, infrastructure, horticulture and craft projects and rural development in order to inject additional purchasing power into the local economy.
He said this in turn would stimulate demand for J & K’s economy and allow it to achieve a higher growth rate.
Stressing that bold initiatives are needed to restore the confidence of commerce, industry and the common people, Raina called for the liberalization of conditions to facilitate the influx of investment and the economic rescue for trade and commerce. of J&K by concession in the RBI guidelines and the Structured Package for Existing Industries.
PHDCCI-Kashmir suggested to the Union territory and the central government to improve the general business climate in both industry and agriculture, reform macroeconomic policy, ensure deficit reduction budget and to increase investments in education, crafts, hand-weaving, health, infrastructure and Community development, Nutrition with appropriate change of priorities.
Emphasizing the need to take crucial steps in a number of key areas to fully benefit from the reforms carried out so far by the J&K administration, Raina said such steps would help unleash latent energies in the agricultural sectors, industrial and commercial.
“We have put forward some suggestions for the next budget which mainly includes a waiver of the arrears amnesty tax amount in the old tax system (VAT), given the continued business losses in recent years. The amount of overdue arrears is increased by penalties, and in reality it will not be as large as expected. The budgetary provision for these arrears would be a special relief to the J&K business community. ”
The statement says an attempt should be made in the next budget to ensure that loans taken by women, artisans, weavers and workers in microfinance institutions (MFIs) are canceled, to regulate and create the mechanism. effective.
“We proposed that the government introduce a law in order to protect and relieve economically vulnerable groups and individuals from excessive interest rate constraints and coercive means of collection by microfinance institutions (MFIs) or agencies or money lending organizations.
While applauding the government’s intention to encourage industrial investment with megaprojects and increase the scale of operations in Jammu and Kashmir, Raina said the government also needs to study very closely why the existing industry hasn’t really been successful in the past.
“It is very crucial to avoid errors of omission and commissions in the past. Otherwise, it will remain a better-designed plan that fails to advance the development of J & K’s industry. “
“We hope that the UT government will place an extremely well-designed budget and provide a new stimulus for J & K’s economic growth, a particular focus on social and employment-oriented sectors and the promise of a more inclusive future. “said Raina. (KNS)