||Black and White Digital News||

||Parvinder Singh December 05, 2024||

JAMMU :In a concerning revelation that underscores the fragile state of Jammu and Kashmir’s industrial landscape, over 700 Micro, Small, and Medium Enterprises (MSMEs) have ceased operations in the last four years. This distressing trend is mirrored on a national scale, with an alarming 61,469 industrial units shutting shop across India during the same period, according to a written response by Union Minister of Commerce and Industry Piyush Goyal in the Lok Sabha.

A Glimpse into the Decline:

Between July 1, 2020, and November 15, 2024, Jammu and Kashmir witnessed the closure of 701 industrial units, comprising 697 micro-enterprises and four small-scale enterprises. These closures form a stark part of the broader national crisis, where 60,909 micro, 507 small, and 53 medium-scale enterprises shuttered their doors, leaving behind a trail of unemployment, financial instability, and socio-economic distress.

The figures paint a bleak picture of the industrial sector’s health, with local businesses in Jammu and Kashmir bearing the brunt of mounting debts and operational challenges. The industrial estates, once bustling hubs of production, now face auctions, reflecting the dire state of affairs.

Industrialists Call for Balanced Development:

Jammu’s industrial sector has raised an urgent plea for revamping the region’s industrial ecosystem. While the government’s push to attract new investors is a positive step, industrialists argue that equal, if not greater, focus is needed to sustain the existing units.

“The closure of over 700 MSMEs is a wake-up call,” said a local industrialist. “We need policies that not only encourage new ventures but also support struggling businesses to prevent further erosion of our industrial base.”

Government Initiatives and Limitations:

Industrial development largely falls under the purview of state governments. However, the central government has rolled out several initiatives aimed at revitalizing the sector. Flagship programmes like ‘Make in India,’ Production-Linked Incentive (PLI) schemes, and the National Industrial Corridor Programme have been designed to boost industrial growth, alongside efforts to enhance Ease of Doing Business (EoDB) and reduce compliance burdens.

Specific to MSMEs, financial support schemes such as collateral-free loans up to ₹5 crore, margin money subsidies under the Prime Minister’s Employment Generation Programme (PMEGP), and targeted benefits for women and vulnerable groups have been introduced. The Emergency Credit Line Guarantee Scheme (ECLGS), launched during the COVID-19 pandemic, provided critical financial relief, preventing an even greater number of closures.

However, the expiration of the ECLGS in March 2023 has left many businesses struggling to navigate the post-pandemic economic landscape.

A National Trend with Local Repercussions:

The closures in Jammu and Kashmir are not isolated. Across the nation, small and micro enterprises, which form the backbone of India’s economy, are grappling with rising operational costs, dwindling demand, and increased competition.

In J&K, these challenges are exacerbated by the region’s unique political and economic circumstances. While the government’s ambitious industrial promotion policies aim to attract investment and create jobs, the stark reality is that the existing industrial units are being left behind, unable to compete or even survive.

The Path Forward:

As industrial estates fall silent and small business owners face mounting losses, the call for a balanced and inclusive industrial policy grows louder. Policymakers must address systemic issues such as debt repayment pressures, high operational costs, and inadequate support for struggling enterprises.

The government’s focus must shift from mere statistics to creating an enabling environment where existing businesses can thrive alongside new ventures. Unless immediate action is taken, the closures of 700 MSMEs in J&K could mark the beginning of a deeper economic crisis, with devastating consequences for the region’s development and livelihoods.

The plight of these MSMEs underscores the urgent need for a strategic overhaul of the industrial sector, not just in Jammu and Kashmir but across the nation. The story of their struggle and resilience is a clarion call for a more sustainable and equitable approach to industrial development.