Jammu: The Indian Chamber of Commerce (ICC), Jammu Chapter, on Tuesday submitted a comprehensive set of proposals for the Union Territory’s Budget 2026–27 to Chief Minister Omar Abdullah, calling for an industry-led, fiscally balanced growth strategy to strengthen Jammu and Kashmir’s economy.
The memorandum was presented by ICC Jammu Chairman Rahul Sahai during a stakeholders’ interaction held in Jammu. The Chamber welcomed the revival of pre-Budget consultations and said such participatory governance could help Jammu and Kashmir move towards becoming a revenue-surplus Union Territory while ensuring inclusive growth and economic stability.
A key thrust of ICC’s submission was the formulation of a pragmatic New Industrial Policy that supports existing units, incentivises expansion and attracts fresh investment. For existing industries, ICC proposed a turnover-linked incentive of 3 per cent for micro enterprises and 2 per cent for small and medium enterprises with an annual cap, a 5 per cent working capital subsidy to offset the expiry of NCSS benefits in 2026, continuation of SGST reimbursement under SRO-31 till 2031 and beyond, a 6 per cent interest subsidy on term loans for modernisation and solar installations, and capital support for adoption of renewable energy.
For units undertaking substantial expansion, the Chamber recommended extending turnover and working capital incentives to the expanded capacity, continuation of SGST refunds for both existing and new activities, a 6 per cent interest subsidy on expansion-linked term loans with higher caps, and a simplified capital subsidy of up to 35 per cent on machinery and solar plants with a higher ceiling and clearer definition of eligible components. For new industrial units, ICC suggested turnover incentives, working capital support, long-term SGST refunds linked to investment in plant and machinery, capital subsidy up to 35 per cent and interest subsidy on term loans to improve project viability and ease early-stage financial stress.
The Chamber also sought a blanket exemption from stamp duty and court fees for industrial transactions, including enhancement or takeover of credit facilities, change or addition of product lines, and transactions involving leasehold land and assets in government industrial estates. ICC proposed that a single registration with the Industries Department should be sufficient to avail such waivers, arguing that this would reduce ambiguity, cut costs and significantly improve ease of doing business.
In addition to industry-focused measures, ICC’s memorandum covered proposals for development of IT infrastructure through city-based IT parks, promotion of sports and exhibition-led economic activity, strengthening of social infrastructure such as parking, housing and skill development, and targeted initiatives to boost tourism in Jammu. These include establishment of facilitation centres, digital promotion, improved connectivity and policy reforms in the hospitality sector.
Reaffirming its commitment to the region’s economic development, ICC said it would continue to work closely with the Government of Jammu and Kashmir to support the implementation of policies aimed at ensuring sustainable, balanced and employment-oriented growth across the Union Territory.
