Topics covered: Inclusive growth and issues arising from it.
New Industrial Development Scheme for Jammu & Kashmir (J&K IDS, 2021)
Government of India has formulated New Industrial Development Scheme for Jammu & Kashmir (J&K IDS, 2021) for the development of Industries in the UT of Jammu & Kashmir.
About the scheme:
J&K IDS, 2021 is a Central Sector Scheme. The scheme aims to take industrial development to the block level in UT of J&K, which is first time in any Industrial Incentive Scheme of the Government of India.
- The financial outlay of the proposed scheme is Rs.28400 crore for the scheme period 2020-21 to 2036-37.
- Scheme while encouraging new investment, also nurtures the existing industries in J&K by providing them working capital support at the rate of 5% for 5 years.
Main purpose of the scheme is to generate employment which directly leads to the socio economic development of the region.
- It aims at development of Manufacturing as well as Service Sector Units in J&K.
Key Features of the Scheme:
- Scheme is made attractive for both smaller and larger units.
- It attempts for a more sustained and balanced industrial growth in the entire UT.
- Scheme has been simplified on the lines of ease of doing business by bringing one major incentive- GST Linked Incentive- that will ensure less compliance burden without compromising on transparency.
- It is not a reimbursement or refund of GST but gross GST is used to measure eligibility for industrial incentive to offset the disadvantages that the UT of J&K face.
Major Impact and potential:
Scheme is to bring about radical transformation in the existing industrial ecosystem of J&K with emphasis on job creation, skill development and sustainable development.
It will attract new investment and nurturing the existing ones, thereby enabling J&K to compete nationally with other leading industrially developed States/UTs of the country.
- What is J&K IDS?
- Duration of the scheme.
- Incentives given under the scheme.
- Central Sector Scheme VS Centrally Sponsored Scheme
New Industrial Development Scheme for Jammu & Kashmir scheme attempts for a more sustained and balanced industrial growth in the entire UT. Discuss.