Jammu: The Indian Chamber of Commerce (ICC), Jammu Chapter, has welcomed the Union Budget 2026–27 for its emphasis on sustained economic growth, fiscal discipline and structural reforms, while urging the Government to introduce region-specific measures to address challenges faced by industries in Jammu and Kashmir.
Commenting on the Budget, ICC Jammu Chairman Rahul Sahai said it reflects the government’s approach of “action over ambivalence and reform over rhetoric” and lays a strong foundation for long-term economic resilience under the Viksit Bharat vision.
Highlighting key positives from an industry perspective, Sahai said the continued thrust on public capital expenditure and infrastructure development — including freight corridors, national waterways, urban economic regions, and focused development of Tier-II and Tier-III cities — would significantly improve logistics efficiency and regional connectivity. He said this is particularly critical for better integration of Jammu and Kashmir with national markets.
He also welcomed the three-pronged strategy for MSME growth, citing the ₹10,000 crore SME Growth Fund, mandatory use of the Trade Receivables Discounting System (TReDS) by central public sector enterprises, credit guarantee support for invoice discounting, and professional assistance through ‘Corporate Mitras’. These measures, he said, have the potential to improve liquidity, compliance support and ease of doing business for MSMEs.
Sahai further appreciated the Budget’s focus on domestic manufacturing and strategic sectors, including the revival of legacy industrial clusters, electronics, textiles, chemicals and advanced manufacturing. He described these initiatives as important steps towards strengthening India’s overall industrial ecosystem.
However, the ICC Jammu Chairman flagged certain gaps that, he said, need urgent attention. He noted that while new manufacturing has been incentivised, the Budget does not adequately address cost pressures faced by existing industries, especially in geographically challenging regions like Jammu and Kashmir, where logistics and power costs remain high.
He also pointed out the absence of region-specific credit support or interest subvention mechanisms for hill and aspirational states, which he said limits the Budget’s impact on local enterprises. Sahai added that despite the national focus on tourism and services, customised policy instruments for border and post-conflict economies such as Jammu and Kashmir are still lacking.
Concluding his remarks, Sahai said the Union Budget is structurally strong and reform-driven, but its real success in regions like Jammu and Kashmir will depend on targeted implementation and state-specific interventions. He added that ICC Jammu remains committed to working closely with the Government to ensure that national policy intent translates into tangible regional economic outcomes.
