Mubashir Alam Wani
Srinagar, Feb 1: The Centre proposing allocation of Rs 41000.07 crore to Jammu & Kashmir in the 2025-26 Union Budget evoked a mixed response from the business community in the Union Territory.
Some traders welcomed key initiatives like tax relief and MSME support, while others voiced concerns over reduced financial allocations and the absence of a special economic package to revive the struggling industrial sector.
The Kashmir Trade Alliance (KTA)—expressed its strong approval to the Union Budget highlighting the enhancement of the income tax slab to Rs 12 lakh.
KTA President Aijaz Shahdhar in a statement, said, “The KTA believes that this increase will provide much-needed relief to taxpayers, allowing them to retain a larger portion of their hard-earned income.”
President of the Kashmir Chamber of Commerce & Industry (KCC&I), Javid Tenga, voiced concern over the Rs 1,200 crore ‘reduction’ in the budget compared to the previous year.
He said the trade body had expected an increase of at least 20–25% to support development and fund inflows in the region. “We are disappointed because we were expecting a boost in financial allocations. This reduction raises serious concerns about how development will take place and how funds will be generated for various sectors,” Tenga said.
However, he acknowledged some positive aspects at the central level, particularly the increase in the Credit Guarantee Fund for MSMEs from Rs 5 crore to Rs 10 crore and the enhancement of the Prime Minister’s Mudra Scheme from Rs 10 lakh to Rs 20 lakh.
He said these steps would benefit young entrepreneurs, especially given J&K’s high unemployment rate.
In the tourism sector, Tenga welcomed the government’s plan to develop 50 new destinations, exuding hope that at least 8-10 of them would be in Kashmir, given the region’s prominence in the industry.
On the ground level, however, Tenga noted that the budget lacked direct relief for traders and industrialists in J&K. “There is no special package for our industrial sector, which has been our long-standing demand. We have represented this issue multiple times before the Finance Minister and the J&K administration, and we will raise it again,” he said, adding, “We need a relief package and the restoration of the Rs 1,200 crore cut.”
Meanwhile, in a statement, a KCCI spokesman said, “The budget includes several commendable initiatives that promise to enhance economic activity. However, there is a pressing need for a special revival and infrastructural development package tailored to the unique challenges faced by Jammu and Kashmir, more so considering the huge unemployment problem being faced by the youth in the Union Territory.”
The KCCI spokesman while listing the “steps in right direction” said, “Provision for an increase in medical seats by 10,000, an increase of 7500 seats in ITI’s, the availability of 36 cancer drugs free of charge, the introduction of Mudra loans for homestays to boost tourism, tax exemption on interest on savings of senior citizens, and the Atal Tinkering scheme covering 50,000 schools will enhance the quality of life and economic prospects in the region.”
Mohammad Yaseen Khan, another prominent trade leader, said, “The budget lacks the elements to address the specific economic challenges of J&K.”
However, he appreciated the changes in tax slabs and some central schemes but was quick to add that “there is nothing in the budget for middle-class traders on the ground.” (KNO)
