More Than 1,820 MSMEs Shut Shop in J&K; Over 7,000 Jobs Lost in Five Years
Srinagar, Dec 14, 2025 — Jammu and Kashmir has witnessed the closure of more than 1,820 Micro, Small and Medium Enterprises (MSMEs) over the past five years, resulting in the loss of 7,066 jobs, according to official figures from the Udyam registration portal.
The data covers the period from July 1, 2020 to November 30, 2025, highlighting a sharp rise in business closures across the Union Territory, particularly in the last two years.
Year-by-Year Breakdown
- 2023–24: 241 MSMEs shut down, resulting in 869 job losses.
- 2024–25: Closures increased with 566 MSMEs ceasing operations and 2,077 workers affected.
- 2025–26 (until Nov 30): The highest number recorded so far — 842 MSMEs closed and 3,445 jobs lost.
Together, the last two years account for nearly 77% of all MSME closures and job losses in the region during the five-year period.
Impact on Local Economy
MSMEs are critical to the local economy of Jammu and Kashmir, driving employment and serving as a backbone for manufacturing, trade, handicrafts, tourism-linked services and agro-based industries. Closures often hit families directly, as micro enterprises typically support multiple dependents.
Business leaders have expressed concern over the trend. Javid Ahmad Tenga, President of the Kashmir Chamber of Commerce and Industry, described the numbers as reflective of “extremely difficult conditions” facing entrepreneurs in the region and stressed the need for improved access to credit and institutional support to help small businesses survive and grow.
National Context
At the national level, the MSME sector also shows signs of distress — though on a larger scale — with 1,20,933 enterprises deregistered across India during the same period, affecting 7,80,833 jobs overall. However, this represents a relatively small fraction of the total 7.22 crore registered MSMEs nationwide since July 2020.
Experts note that while the percentage of closures nationally remains low at around 0.17%, aggregate figures can mask regional disparities where even modest business losses translate into significant economic pain. In comparatively fragile economies like Jammu and Kashmir, every MSME closure not only affects local employment but also weakens household incomes and market demand.
Challenges Ahead
Industry stakeholders have repeatedly highlighted challenges such as:
- Restricted access to affordable credit
- Procedural hurdles and delayed payments
- Rising input costs
- Weak consumer demand
- Infrastructure constraints
These pressures, they argue, are driving many small enterprises out of business and underline the need for targeted policy intervention, streamlined support mechanisms, and sustained handholding if the MSME sector in J&K is to stabilize and grow. (GK)
