In a bid to bolster the Micro, Small, and Medium Enterprises (MSME) sector in the Union Territories of Jammu & Kashmir and Ladakh, the 70th meeting of the Empowered Committee convened in Jammu. The session, held at the Reserve Bank of India, Jammu, focused on evaluating credit flow, promoting digital financing, and ensuring the effective implementation of key MSME support schemes. The discussion encompassed the quarter concluding on March 31, 2026, setting the stage for future strategies and interventions.
The meeting saw active participation from various stakeholders, including Chandrashekhar Azad, Regional Director of RBI Jammu, who chaired the proceedings. Representatives from the Department of Industries & Commerce, the MSME-Development and Facilitation Office, and the Small Scale Industries Development Corporation Limited (SICOP) were also present. Furthermore, key figures from SIDBI, controlling heads of banks, the General Manager of UTLBC Convenor Bank, J&K, and representatives from diverse industry associations contributed to the discourse.
As per information available with TahirRihat.com, Chandrashekhar Azad emphasized the critical role of MSMEs in India’s industrial economy. He highlighted their substantial contributions to the nation’s GDP, manufacturing output, export activities, and employment generation. Azad drew attention to the Union Budget 2026-27 measures that mandate the use of the Trade Receivables Discounting System (TReDS) by Central Public Sector Enterprises for procurement from MSMEs, a move aimed at streamlining financial processes and supporting smaller enterprises.
Azad also referenced the RBI’s recent policy statement issued on April 8, which included developmental and regulatory policies designed to ease access to TReDS platforms for MSMEs. Specifically, the requirement for due diligence for MSMEs during onboarding on these platforms has been removed, reducing bureaucratic hurdles and facilitating smoother integration into the digital financing ecosystem. This policy change reflects a commitment to fostering a more inclusive and accessible financial landscape for MSMEs.
During the review of regional performance, Azad noted that both Union Territories had demonstrated impressive achievements under the MSME Annual Credit Plans for the financial year 2025-26. He urged banks to further enhance credit flow to the sector, emphasizing the need for faster onboarding of MSME buyers and sellers on TReDS. Additionally, he advocated for increased Udyam registration, wider coverage under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), and greater utilization of digital platforms to formalize operations and streamline last-mile credit delivery.
The Empowered Committee also conducted a detailed review of several critical areas, including district-wise credit disparities, targets set by the Prime Minister Task Force, and the status of Non-Performing Assets (NPAs). Discussions also centered on the rehabilitation of stressed units, the pendency of loan decisions up to Rs 25 lakh, and the progress of cases under various government schemes such as the Prime Minister Employment Generation Programme (PMEGP), PM Street Vendor’s AtmaNirbhar Nidhi (PM-SVANidhi), Pradhan Mantri Mudra Yojana (PM-Mudra), and PM Vishwakarma. The availability of banking facilities in key MSME clusters was also scrutinized.
Rahul Sahai, chairman of the Indian Chamber of Commerce (ICC), Jammu chapter, who represented the ICC at the meeting, raised several key issues impacting MSMEs. These included the need for stronger implementation of TReDS, the provision of solar financing options, and increased awareness regarding CIBIL scores. Sahai also called for the early announcement of the new Industrial Incentive Policy for J&K, which is expected to provide further impetus to the region’s industrial sector.
(The Daily Excelsior reported that) the ICC also advocated for greater support for natural farming and agri-units, the adoption of EV-based transport solutions, and the easing of loan processes. Additional requests included lower collateral norms, faster grievance redressal mechanisms, and enhanced digital banking and cyber security awareness among MSMEs. These recommendations reflect a holistic approach to addressing the diverse needs and challenges faced by businesses in the region.
Tahir Rihat (also known as Tahir Bilal) is an independent journalist, activist, and digital media professional from the Chenab Valley of Jammu and Kashmir, India. He is best known for his work as the Online Editor at The Chenab Times.
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