Budget aligns with aspirations of business community: KCCI

Srinagar, Mar 7: The Kashmir Chamber of Commerce and Industry (KCCI) warmly welcomed the budget presented by Chief Minister Omar Abdullah, highlighting that many of its recommendations have been incorporated, which aligns with the aspirations of the business community in Jammu and Kashmir.
As per a statement, KCCI welcomed the provision of 200 units of free electricity for AAY households and the introduction of free transport services for women, both key measures promoting social equity.
KCCI welcomed the announcement of the establishment of PM Unity Malls in Srinagar and Jammu to support local artisans, this demand for establishing exhibition mart in Kashmir was presented by KCCI at different levels of governance both at centre as well as in J&K. Additionally. 75 crore allocation for a strategic investment plan for Micro, Small, and Medium Enterprises (MSMEs) is good, but KCCI had hoped for more funding for the revival of industrial sector and general trade in the Budget.
KCCI welcomed budget support for 2,000 handicrafts and handloom cooperatives, reflecting a strong commitment to cultural heritage.
The chamber also appreciates the allocation of Rs. 50 crore for financial aid and mentorship programs for emerging entrepreneurs.
The development of 46 new industrial estates with Rs. 310 crore allocated, along with Rs. 100 crore for upgrading existing estates, indicates a focus on industrial growth, which is a welcome move.
KCCI also appreciates that the enhancement of budgetary allocation of Rs, 2221 crores an increase of Rs. 332 crore over last budget which will boost the agriculture and horticulture sectors, more so, with plans to increase fish production and establishing 50 fruit processing units. KCCI believes that the tourism sector will also benefit from a doubled promotion budget of Rs. 36 crore and Rs. 50 crore allocated for developing new destinations, alongside plans to revive tourism assets.
KCCI is pleased with initiatives in education, such as introducing new courses in 10 Industrial Training Institutes (ITIs) and placement drives for 1,000 graduates. Additionally, the budget includes 200 E-Buses under the PM E-Bus Sewa program, promoting sustainable transportation, and aims for the expedited completion of major hydro projects by 2027.
Finally, allocations for sewage and water treatment plants at tourist locations, amounting to Rs. 80 crore is a good step .
However, KCCI expresses disappointment over the lack of an increased budget for 2025-26 and notes the absence of funding for water management amid climate change challenges.
KCCI had anticipated that this year’s budget would exceed the previous year’s allocation. However, this expectation was not met, as the current budget size has fallen short of last year’s figures. This reduction raises concerns among industry/business stakeholders who were looking for more substantial fiscal support to address pressing economic challenges and stimulate business activities.
Further, KCCI had hoped the budget would focus on addressing the high unemployment rate, which, according to the MOSPFI, stands at a staggering 32.8 percent in urban areas. In addition to tackling job creation, there is an urgent need for effective Solid Waste Management solutions to mitigate the environmental impacts of waste. The budget should have also prioritised the regulation of common STPs to prevent the discharge of liquid waste into rivers and water bodies, thereby protecting public health and preserving ecological integrity.