The issues raised by the Federation of Chambers of Industry Kashmir (FCIK) regarding the Government’s procurement policy sheds light on the challenges faced by local industrial manufacturers in the Union Territory. The concerns raised by FCIK, particularly regarding the adverse impact on local industries and the growing trade deficit due to increased imports, warrant serious attention from policymakers. The adoption of the General Financial Rules (GFR) by the UT Government in 2019, along with the shift to a turn-key system of executions by the Power Development Department, has placed local units at a significant disadvantage. The inclusion of local manufacturers in ongoing schemes and programmes is essential to promoting indigenous manufacturing and ensuring equitable participation in the market. The Revamped Distribution Sector Scheme (RDSS), sanctioned by the Central Government with a substantial budget for J&K, presents a crucial opportunity to support local industries. However, fair qualification criteria in tenders are necessary to prevent the exclusion of local units and promote their participation in projects.
The President of KEMA had drawn attention to the challenges faced by electric equipment manufacturers in the region. Instances of contracts being awarded to external companies for projects that could have been executed by local manufacturers underscore the need for a more inclusive procurement process. The restoration of marketing support to MSMEs in the region is paramount to alleviating growing unemployment in the region. The Government needs to recognise the importance of developing indigenous manufacturing capabilities, reducing dependence on imports, and reducing costs. This requires a concerted effort to revise procurement policies and prioritise local industries in Government projects. Furthermore, fostering collaboration between Government agencies, industry associations, and local manufacturers is essential to effectively addressing the challenges. By working together, stakeholders can identify solutions and streamline procurement processes to create a conducive environment for the growth of local industries. It is time to prioritise the development of local industries and unleash their full potential for the benefit of the region’s economy and its people.
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