04 January 2023, Mumbai
Garment manufacturers from Ludhiana are planning to shift to Jammu Kashmir.
In view of the incentives provided to set up industries in Jammu Kashmir, they feel the cost of production will be very low as compared to Punjab.Jammu Kashmir is offering unmatched incentives to the industry, including 30 per cent state capital investment subsidy, up to five per cent interest subsidy on working capital, reimbursement and freight refund scheme. Included in the incentive package is an offer to investors of up to Rs 5 crores under the central capital investment incentive for access to credit. Besides, investors can also avail of the reimbursement of Centre’s share of GST.
Ludhiana manufacturers feel if they are able to avail of just three or four incentives out of these after setting up new garment units there, the cost of production would be significantly lower as compared to their units in Punjab.
Ludhiana is known for its hosiery and woolen products worldwide. The products manufactured here are exported and sent to Uttar Pradesh, Jammu and Kashmir, Rajasthan, Madhya Pradesh and Bihar, among others. Ludhiana in Punjab accounts for over 90 per cent of the total winter wear production in the country. There are around 12,000 units, a majority of them in the micro, small and medium category.
