The Biz Reporter
Srinagar:
The Kashmir Chamber of Commerce and Industry (KCC&I) has offered a mixed response to the Jammu and Kashmir Budget 2026–27, welcoming the acceptance of several long-pending demands of the business community while expressing concern over the absence of targeted relief for sectors affected by the ongoing economic slowdown and recent adverse developments.
In its assessment, KCCI noted that the Budget proposes a total net outlay of ₹1,13,767 crore, with the Gross State Domestic Product projected at ₹3,15,822 crore, reflecting a growth rate of 9.5 per cent. The fiscal deficit is estimated at 3.69 per cent for 2026–27, marginally higher than the revised estimate of 3.63 per cent in the previous year, while the tax-to-GDP ratio is projected at 6.6 per cent. The Chamber said these indicators underline fiscal constraints and highlighted the need for calibrated support to stressed sectors.
KCCI President Javid Ahmad Tenga welcomed the announcement of a Centre of Excellence in Artificial Intelligence with an outlay of ₹20 crore and the proposal to establish a Unity Mall with financial support of up to ₹200 crore, describing both initiatives as long-standing demands of the Chamber. He said the Unity Mall would provide a permanent platform for artisans and craftsmen and help strengthen market access for traditional products. The introduction of a Self-Certification Scheme for MSMEs, with a three-year grace period for clearances, was also termed a positive step.
The Chamber appreciated the strong social welfare component of the Budget, including six free LPG cylinders per year for Antyodaya Anna Yojana households, full fee waivers for AAY students in government schools (Classes 9–12) and government degree colleges, enhanced monthly assistance, a 25 per cent increase in disability pensions benefiting over 1.62 lakh pensioners, and free government transport facilities for persons with disabilities.
KCCI particularly welcomed the focus on agriculture and horticulture. It noted that crop insurance under the Restructured Weather-Based Insurance Scheme will cover apple, saffron, mango and litchi with a sum insured of ₹6,594.93 crore. The top-up subsidy for 40 new Controlled Atmosphere stores, involving an investment of ₹1,400 crore and a subsidy provision of ₹600 crore in districts other than Pulwama and Shopian, was also welcomed. Other positive interventions cited included the establishment of seven milk processing plants costing ₹770 crore, a 25 per cent top-up subsidy for micro and sprinkler irrigation covering nearly three lakh hectares, and the setting up of Embryo Transfer Technology laboratories in every district with an investment of ₹65 crore.
However, the Chamber expressed concern that despite clear signs of economic slowdown and the impact following the post–April 22 attack in Pahalgam, the Budget is silent on interest subvention or credit support for tourism and allied sectors. KCCI said it had specifically sought interest subvention for tourism, general trade, transport and small businesses, which continue to face stress.
While welcoming the proposed recruitment for 23,800 posts, the Chamber reiterated that there is still no clear and enforceable policy on local preference for industries and MSMEs in procurement and project execution in Jammu and Kashmir.
KCCI also expressed disappointment over the lack of focused incentives for handicrafts and exports. It pointed out that despite repeated demands for export promotion incentives for handicrafts and handloom products, no concrete measures have been announced, even as exports declined sharply from ₹1,164 crore to ₹733 crore in the last fiscal year.
In conclusion, the Chamber said that while the Budget 2026–27 addresses certain long-pending demands—such as the Unity Mall and the Centre of Excellence in AI—and includes positive welfare and horticulture measures, it falls short in addressing immediate economic stress, tourism revival, export promotion and local industry protection. KCCI urged the government to introduce corrective measures in the interest of growth, employment and local enterprise in Jammu and Kashmir.
