The Kashmir Chamber of Commerce and Industry (KCCI) has initiated high-level deliberations with the Directorate General of Foreign Trade (DGFT) to address a concerning contraction in the region’s textile and handicraft exports. Following a fiscal year that saw handicraft revenues plummet from Rs 1,162 crore to Rs 733 crore, a delegation led by executive members Muzaffar Majid Jan and Ashiq Hussain Shangloo met in New Delhi on February 18, 2026. The discussions centered on reversing a persistent dip in second-quarter performance through institutionalized market outreach and structural policy shifts.
Operationalizing global outreach and trade facilitation
To mitigate the impact of machine-made imitations, the KCCI proposed a structured roadmap for Kashmir-based exporters to participate in international trade fairs under the Export Promotion Mission (EPM). The chamber, which remains the sole authorized agency for issuing Certificates of Origin (CoO) in the region, is advocating for a dedicated HSN code for handmade, value-added shawls to ensure artisanal sustainability. This move aligns with the Union Budget 2026–27, which allocated Rs 5,279 crore to the textile sector, emphasizing the modernization of traditional clusters.
Navigating the ‘Tex-Eco’ mandate and market barriers
The regional trade ecosystem faces significant hurdles, including an upper ceiling of Rs 438 on incentives under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, which KCCI argues disadvantages high-value handmade goods. However, opportunities are emerging through the recent India–US trade deal, which reduced reciprocal tariffs from 25 per cent to 18 per cent By leveraging new digital portals like Bharat Trade Net, KCCI aims to streamline documentation and integrate Kashmir’s heritage apparel - specifically Pashmina and Kani shawls - into the global ‘quiet luxury’ and sustainable fashion segments by FY27.
Established in 1934, the Kashmir Chamber of Commerce and Industry (KCCI) is the premier representative body for J&K’s trade and industrial sectors. It focuses on promoting high-value handicrafts and horticulture in global markets. Growth plans involve digitizing export documentation and reviving traditional weaving clusters to restore multi-billion rupee export valuations.
