Rehan Qayoom Mir
Srinagar, Feb 6: The Jammu and Kashmir Budget 2026–27, presented by Chief Minister Omar Abdullah on Friday, drew mixed reactions, with business bodies and industrial federations welcoming long-pending initiatives such as the Unity Mall and the Centre of Excellence in Artificial Intelligence.
The trade body and employee groups, however, expressed concerns over sectoral relief, export incentives and the regularisation of temporary employees.
“The Budget, which outlines a total net outlay of Rs 1,13,767 crore with a projected GSDP of Rs 3,15,822 crore and a fiscal deficit of 3.69 per cent, has been welcomed for its focus on infrastructure, welfare and sectoral development,” trade leaders and industry bodies said.
While business and industrial groups praised initiatives aimed at fostering innovation, entrepreneurship and market access, stakeholders in tourism, trade, and temporary employment voiced concerns over the absence of targeted relief measures, export incentives and a clear roadmap for employee regularisation.
The Kashmir Chamber of Commerce and Industry (KCCI) welcomed Budget proposals, including the Unity Mall, with Rs 200 crore support and the AI Centre of Excellence, with Rs 20 crore, describing them as “long-standing demands of the business community.”
The Chamber also noted that the Unity Mall would enhance market access for artisans and craftsmen, while the Self-Certification Scheme for MSMEs, offering a three-year grace period for clearances, was a positive step.
KCCI also lauded social welfare measures, including six free LPG cylinders per year for Antyodaya Anna Yojana households, full fee waivers for students (Class 9–12) in government schools and degree colleges, monthly assistance, 25% increase in disability pensions benefiting over 1.62 lakh pensioners and free government transport for persons with disabilities.
Support for agriculture and horticulture was also appreciated, including crop insurance for apple, saffron, mango and litchi under the Restructured Weather-Based Insurance Scheme (Rs 6,594.93 crore), top-up subsidy for 40 new Controlled Atmosphere stores (Rs 1,400 crore investment, Rs 600 crore subsidy for districts outside Pulwama and Shopian), seven milk processing plants (Rs 770 crore), 25% top-up subsidy for micro and sprinkler irrigation covering nearly three lakh hectares and district-wise Embryo Transfer Technology Labs (Rs 65 crore).
However, KCCI raised concerns over the absence of interest subvention or credit support for tourism, trade, transport and MSMEs, especially in light of the post-April 22 Pahalgam attack and the ongoing economic slowdown.
The Chamber also noted the decline in exports from Rs 1,164 crore to Rs 733 crore and the lack of concrete incentives for handicrafts and handloom products.
The Federation of Chambers of Industries Kashmir (FCIK) described the Budget as a visionary blueprint, highlighting economic revival, participatory governance and investment-friendly reforms.
FCIK welcomed the Holistic Agriculture Development Programme (29 projects), amendments to the Industrial Policy, self-certification for regulatory compliance and parity for sick industrial units.
The Federation, however, noted gaps in power amnesty, VAT relief and resolution of industrial bottlenecks, urging timely implementation of all policies.
Rahul Sahai, Chairman of the Jammu Business Council of the Indian Chamber of Commerce, speaking to reporters in Jammu, called it a “balanced and progressive Budget”, citing GST reductions, SIC unit revival, 24×7 power until 2027–28, the Jagti water park, and Jammu Zoo.
KTMF President Mohammed Yaseen Khan said, “The Budget covers our pre-budget discussions with the Chief Minister and has multiple benefits for common people.”
“Some measures could have been stronger, but overall it is a good Budget,” he said.
EJAC General Secretary Sajad Parray expressed concerns over the regularisation of temporary employees, stating that despite assurances in the Budget, no timeline or concrete roadmap has been provided.
He said delays in committee reports promised since March 2025, gaps in Minimum Wage implementation and a lack of clarity on benefits, phases and inclusion of retired, injured, or martyred employees, warning that these delays prolong uncertainty for 450,000 temporary employees.
Similarly, the Indian Chamber of Commerce (ICC), Jammu Chapter, welcomed the Budget as progressive and fiscally stable despite limited funding, highlighting the government’s focus on capital expenditure, infrastructure creation and governance reforms.
ICC Chairman Rahul Sahai appreciated the inclusion of Jammu & Kashmir under the SASCI scheme, which provides long-term interest-free funding for infrastructure and disaster mitigation. He welcomed the focus on sustained investment in power, roads, health, education, agriculture, tourism, skilling and employment generation, noting that these measures would stabilise the economy and create long-term growth opportunities.
Sahai stressed that the industrial and MSME sectors now look forward to a robust, clearly defined policy supporting both existing and new industries at par with NCSS incentives, including structured turnover-linked benefits, rationalised power costs, and logistics support.
Meanwhile, stakeholders stressed that while the Budget addresses long-standing demands and welfare measures, focused economic relief, export promotion, tourism revival, and clarity on temporary employee regularisation remain critical to ensure growth, employment and sustainable local enterprise in Jammu and Kashmir.
