Concerns are mounting over the systematic exclusion of industry stakeholders from policy-making and decision-making bodies in Jammu and Kashmir, with experts and business representatives warning that the absence of institutional consultation is weakening governance and adversely impacting the industrial sector.
In any credible governance framework, stakeholder participation is considered fundamental to sound policy-making, particularly in sectors like industry where ground realities are complex and constantly evolving.
Policies framed without the involvement of those directly engaged in enterprise risk are impractical, detached from reality, and ultimately counterproductive.
Recognising this principle, the Government of India has historically emphasised the inclusion of genuine industry representatives in consultative processes.
At the national level, leading industry bodies such as the Federation of Indian Chambers of Commerce and Industry, Confederation of Indian Industry, PHD Chamber of Commerce and Industry, and Associated Chambers of Commerce and Industry of India have played a significant role in shaping industrial policies and regulatory frameworks through structured engagement with the government. Their participation has ensured that reforms are grounded in practical experience and aligned with industry needs.
Jammu and Kashmir, too, historically followed a participative governance model.
It was standard practice for major chambers – two each from Jammu and Kashmir regions – to be represented across boards, councils, missions, and high-level committees dealing with industrial development.
This ensured a continuous feedback loop between policymakers and industry stakeholders, while also serving as a check against arbitrary or disconnected decision-making.
However, this institutional balance has been significantly altered in recent years.
Since 2019, stakeholder organisations have reportedly been excluded – gradually but systematically – from most decision-making platforms related to industry.
Their absence has been particularly notable in the Boards of key Public Sector Undertakings such as Jammu and Kashmir Small Scale Industries Development Corporation and Jammu and Kashmir Small Industries Development Corporation, where stakeholder participation was previously considered integral to effective functioning.
The trend continued with the establishment of the Jammu and Kashmir Industrial Development Corporation in 2021, where no provision was made for stakeholder representation, marking a departure from earlier governance practices that emphasised participatory decision-making.
What has raised further concern among industry circles is that this exclusion has persisted despite the restoration of an elected government.
Even after the reconstitution of the boards of these corporations last year under the chairmanship of the Deputy Chief Minister, stakeholder organisations were not included, prompting questions about policy intent and the declining importance of institutional consultation.
The consequences of this shift are increasingly visible across the industrial landscape of Jammu and Kashmir.
A significant number of industrial units are reported to be either closed, financially stressed, or operating below viable capacity. Stakeholders argue that policies formulated without adequate consultation have failed to address real constraints faced by businesses and, in some cases, have exacerbated existing challenges.
The current industrial policy (2021-30) has also come under scrutiny, with concerns that it was formulated without sufficient engagement with local stakeholders.
It is widely perceived that the lack of contextual understanding – particularly of the region’s unique geography, economic sensitivities, and structural challenges – has resulted in a policy framework that struggles to align with on-ground realities.
Observers note that since 2019, a pattern has emerged wherein decisions affecting industry are taken unilaterally, implemented in a top-down manner, and defended administratively, with limited scope for stakeholder feedback.
This approach has widened the gap between policy intent and industrial experience, raising critical questions about governance practices within the Industries and Commerce Department.
Experts argue that a shift from participative governance to administrative exclusivity appears to be underway, where consultation is increasingly viewed as interference rather than an essential component of policy-making.
In such a framework, accountability mechanisms weaken, and policy outcomes risk becoming disconnected from the needs of the sector.
The situation has also cast doubt on claims of improving ‘Ease of Doing Business’ in the region.
While reforms are frequently highlighted in official documents and statements, stakeholders contend that the exclusion of industry voices undermines the very foundation of such claims.
“Ease of Doing Business cannot exist where stakeholders are denied a voice in shaping policy,” observers said, adding that what is presented as reform risks becoming a façade if institutional dialogue continues to erode.
In such a framework, ‘Ease of Doing Business’ becomes a narrative divorced from reality.
It is invoked in policy documents, echoed in official statements, and showcased in reforms on paper.
Yet, in practice, the very stakeholders who are meant to benefit from this ease are denied a voice in shaping it.
A system that excludes its participants cannot claim to facilitate them.
What is presented as reform thus begins to resemble camouflage – a carefully constructed façade that conceals the erosion of institutional dialogue and the marginalisation of industry voices.
Ease of Doing Business cannot exist where stakeholders are silenced.
And in Jammu and Kashmir, that silence is now institutional.
