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 some long-pending demands of the business community while expressing concern over the absence of targeted relief measures for sectors affected by the economic slowdown and recent adverse developments.
In a statement, the Chamber noted that the Budget proposes a total net outlay of Rs 1,13,767 crore, with the Gross State Domestic Product projected at Rs 3,15,822 crore, reflecting a growth rate of 9.5 per cent. The fiscal deficit for 2026–27 has been estimated at 3.69 per cent, 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. KCC&I said the figures indicate fiscal constraints and underscored the need for calibrated support to sectors under stress.
KCC&I President Javid Ahmad Tenga welcomed the announcement of a Centre of Excellence in Artificial Intelligence with an outlay of Rs 20 crore and the proposal to establish a Unity Mall with financial support of up to Rs 200 crore, describing both initiatives as long-standing demands of the Chamber. The Unity Mall, he said, is expected to provide a permanent platform for artisans and craftsmen and improve market access for traditional products. The introduction of a self-certification scheme for MSMEs, with a three-year grace period for regulatory clearances, was also termed a positive step.
The Chamber appreciated the strong social welfare component of the Budget, including the provision of six free LPG cylinders annually for Antyodaya Anna Yojana households, full fee waivers for AAY students in government schools (Classes 9 to 12) and government degree colleges, monthly assistance and a 25 per cent increase in disability pensions benefiting over 1.62 lakh pensioners, and free government transport facilities for persons with disabilities.
KCC&I also welcomed the focus on agriculture and horticulture, particularly the inclusion of apple, saffron, mango and litchi under crop insurance through the Restructured Weather-Based Insurance Scheme, with a sum insured of Rs 6,594.93 crore. The Chamber said the proposed top-up subsidy for 40 new Controlled Atmosphere stores, involving an investment of Rs 1,400 crore and a subsidy provision of Rs 600 crore for districts other than Pulwama and Shopian, would strengthen post-harvest infrastructure. It further welcomed the establishment of seven milk processing plants costing Rs 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 at an estimated cost of Rs 65 crore.
However, the Chamber expressed concern that despite signs of economic slowdown and the impact following the April 22 attack in Pahalgam, the Budget does not provide interest subvention or credit support for the tourism and allied sectors. KCC&I said it had specifically demanded interest subvention for tourism, trade, transport and small businesses, which continue to face financial stress.
While welcoming the proposed recruitment of 23,800 posts, the Chamber said there is still no clear and enforceable policy on local preference for industries and MSMEs in procurement and project execution in Jammu and Kashmir.
KCC&I also expressed disappointment over the absence of focused incentives for handicrafts and exports. It noted that despite repeated demands for export promotion incentives for handicrafts and handloom products, no concrete measures were announced, even as exports declined sharply from Rs 1,164 crore to Rs 733 crore in the last fiscal year.
Summing up its position, the Chamber said that while the Budget addresses certain long-pending demands, including the Unity Mall and the Centre of Excellence in AI, and contains positive welfare and horticulture measures, it falls short in addressing immediate economic stress, tourism revival, export promotion and protection of local industry. The Chamber urged the government to introduce corrective measures in the interest of growth, employment and local enterprise in Jammu and Kashmir.
