KCCI expresses optimism and concern for Budget’s J&K proposals

Srinagar:  The Kashmir Chamber of Commerce and Industry (KCCI) has expressed a blend of optimism and concern following the Union Budget 2025-26 announcements.

While the budget includes several commendable initiatives that promise to enhance economic activity, KCCI highlights the pressing need for a special revival and infrastructural development package tailored to the unique challenges faced by Jammu and Kashmir, more so, considering the huge unemployment problem facing Jammu & Kashmir.

KCCI has expressed concern over the absence of a special revival package for Jammu and Kashmir, especially in light of the region’s prolonged economic challenges extended over a period of 3 decades. The expectation for a 20% increase in central allocation has not been met, with a reduction of over ₹1,000 crore in central assistance, which raises serious concerns about the region’s development trajectory، the chamber said in a statement to Ziraat Times.

We anticipated the introduction of an industrial development package for Jammu and Kashmir, recognizing its critical role in transforming the region into a thriving industrial hub. Such a package is essential not only for fostering local economic growth but also for aligning with India’s broader vision of becoming the world’s third-largest economy, the chamber observed.

One of the most noteworthy measures is the enhancement of the income tax exemption to ₹12 lakh, which is expected to provide significant relief to the middle-class citizens of Jammu and Kashmir. This move is commendable as it aims to increase disposable income and stimulate consumer spending, a vital component for economic growth, it said.

KCCI also welcomes the introduction of a new scheme targeting 5 lakh first-time entrepreneurs, with a special focus on women, Scheduled Castes, and Scheduled Tribes. The provision of term loans up to ₹2 crore over the next five years is a positive step that will empower many to launch their ventures, fostering innovation and economic diversification, it further said.

“The budget also proposes an increase in the credit guarantee cover for Micro and Small Enterprises (MSEs) from ₹5 crore to ₹10 crore and for startups from ₹10 crore to ₹20 crore. This initiative is expected to bolster the financial stability of local businesses and encourage entrepreneurship”.

“KCCI is particularly pleased with the proposal to extend the export time frame for handicraft goods from six months to one year, with the possibility of an additional three-month extension. This flexibility will significantly benefit exporters, It was long pending demand of KCC&I'”, it noted.

The introduction of customized credit cards for micro-enterprises registered on the Udyam portal, with a limit of ₹5 lakh, exemption of interest in savings of Senior citizens and such other forward-thinking initiatives will provide essential financial support to local businesses and citizens enabling them to sustainably, it further observed.

“The focus on developing Agri Districts under Prime Minister Dhan-Dhaanya Krishi Yojana is a significant investment in agriculture, expected to benefit approximately 1.7 crore farmers. KCCI believes that a thriving agricultural sector will positively impact related industries, including handicrafts, thereby creating a more robust economic ecosystem”.

Additionally, the budget’s provision for an increase in medical seats by 10,000, increase of 7500 seats in ITI’s, the availability of 36 cancer drugs free of charge, and the introduction of Mudra loans for homestays to boost tourism , tax exemption on interest of savings of senior citizens, Atal Tinkering scheme covering 50,000 schools is are all steps in the right direction for enhancing the quality of life and economic prospects in the region, it concluded.