KCCI welcomes budget, calls it a step forward for J&K’s business and economic revival

PM Unity Malls, MSME boost: KCCI hails key takeaways from J&K Budget 2025-26

Srinagar, 08-03-2025: The Kashmir Chamber of Commerce and Industry (KCCI) has welcomed the newly presented Budget, stating that it aligns with the aspirations of the business community in Jammu and Kashmir. The chamber acknowledged that many of its recommendations were incorporated into the financial plan, which aims to stimulate economic growth and address key socio-economic concerns of the Union Territory.

Chief Minister Omar Abdullah, while presenting the first budget of the Union Territory with an outlay of ₹1.12 lakh crore for the fiscal year 2025-26, unveiled a series of measures focused on welfare, infrastructure, industrial development, and social equity. The KCCI particularly lauded provisions such as 200 units of free electricity for Antyodaya Anna Yojana (AAY) households and the introduction of free transport services for women, terming them as critical initiatives for fostering inclusivity and promoting economic participation among disadvantaged sections of society.

A major highlight of the Budget, according to KCCI, is the announcement of PM Unity Malls in Srinagar and Jammu, which are designed to support local artisans and boost handicrafts and handloom industries. The chamber emphasized that the demand for an exhibition mart in Kashmir had been a long-standing one, actively pursued by KCCI at both central and UT levels. The establishment of such infrastructure is expected to enhance the visibility of traditional crafts, promote indigenous products, and create new avenues for artisans and small businesses.

The chamber also appreciated the government’s allocation of ₹75 crore for a strategic investment plan dedicated to Micro, Small, and Medium Enterprises (MSMEs). However, it pointed out that while the move is welcome, the chamber had anticipated a higher allocation to revive the struggling industrial sector and general trade. KCCI stressed that greater financial support is needed to revitalize businesses, encourage entrepreneurship, and sustain economic activities, particularly in the wake of disruptions caused by multiple challenges in recent years.

Another key aspect of the Budget that received positive feedback from KCCI was the provision of ₹50 crore for financial aid and mentorship programs aimed at emerging entrepreneurs. This, the chamber noted, is a step in the right direction for fostering innovation and self-employment, which are crucial for reducing unemployment and strengthening the economic fabric of Jammu and Kashmir.

The business body also praised the emphasis on industrial expansion, highlighting the development of 46 new industrial estates with an allocation of ₹310 crore, in addition to ₹100 crore earmarked for upgrading existing estates. KCCI remarked that this demonstrates a strong commitment to industrial growth, infrastructure enhancement, and job creation, which could lead to increased investment and economic diversification in the region.

In the education sector, KCCI acknowledged the government’s initiative to introduce new courses in 10 Industrial Training Institutes (ITIs) and the planned placement drives for 1,000 graduates, viewing them as positive steps toward addressing the skill gap and improving employability. Moreover, the allocation of ₹80 crore for sewage and water treatment plants at major tourist locations was recognized as an essential move to promote sustainable tourism and environmental conservation.

However, despite these positive aspects, the chamber expressed disappointment over the reduced budget size compared to the previous fiscal year. The total outlay of ₹1.12 lakh crore for 2025-26 falls short of the ₹1.18 lakh crore allocated for 2024-25. KCCI remarked that this reduction is concerning for industry stakeholders, who were expecting a more substantial financial commitment to tackle pressing economic issues and support business recovery.

The chamber also raised concerns over the lack of specific budgetary provisions for water management, despite the growing challenges posed by climate change. It emphasized that sustainable water resource management is critical for agricultural productivity, industrial operations, and overall economic stability. Additionally, KCCI pointed out that the Budget should have allocated more funds for Solid Waste Management solutions to address environmental concerns and ensure proper waste disposal mechanisms across urban and rural areas.

Furthermore, the chamber highlighted that the budget did not adequately address the high unemployment rate, which remains one of the most significant socio-economic challenges in Jammu and Kashmir. While appreciating initiatives for entrepreneurship and industry, KCCI underscored the need for direct interventions to generate large-scale employment opportunities and enhance workforce participation.

Another area of concern for KCCI was the absence of measures to regulate common Sewage Treatment Plants (STPs), which play a crucial role in preventing the discharge of untreated liquid waste into rivers and other water bodies. The chamber emphasized that environmental sustainability should have been given greater priority in the budgetary framework to ensure public health and ecological balance.

While KCCI acknowledged the Budget’s positive elements, particularly in supporting small businesses, artisans, industrial growth, and women’s empowerment, it urged the government to consider additional measures in the future to address the broader economic and environmental concerns of the region. The chamber reiterated its commitment to working collaboratively with policymakers to ensure that the economic aspirations of Jammu and Kashmir’s business community are met through continued policy support, financial incentives, and infrastructure development.