Budget aligns with aspirations of business community in J&K: KCCI

Srinagar, Mar 7 (PTI) The Kashmir Chamber of Commerce and Industry (KCCI) said many of its recommendations have been incorporated in the Budget, which aligns with aspirations of the business community in Jammu and Kashmir.

Chief Minister Omar Abdullah on Friday presented the first budget of the Union Territory with an outlay of Rs 1.12 lakh crore, and proposed a series of welfare and development initiatives for 2025-26.

The chamber hailed the provision of 200 units of free electricity for Antyodaya Anna Yojana (AAY) households and the introduction of free transport services for women, saying both were key measures for promoting social equity.

Besides, announcement of establishment of PM Unity Malls in Srinagar and Jammu to support local artisans was another key takeaway from the Budget, KCCI said in a statement.

“This demand for establishing exhibition mart in Kashmir was presented by KCCI at different levels of governance both at the Centre as well as in J&K.

“Additionally, Rs 75 crore allocation for a strategic investment plan for Micro, Small, and Medium Enterprises (MSMEs) is good, but KCCI had hoped for more funding for the revival of industrial sector and general trade in the Budget,” the chamber said.

It also praised the budget support for 2,000 handicrafts and handloom cooperatives, saying it reflects a strong commitment to cultural heritage of the Union Territory.

The chamber also appreciated the allocation of Rs 50 crore for financial aid and mentorship programmes for emerging entrepreneurs.

The development of 46 new industrial estates with Rs 310 crore allocation, along with Rs 100 crore for upgrading existing estates, indicates a focus on industrial growth, which is a welcome move, it said.

Initiatives in education, such as introducing new courses in 10 Industrial Training Institutes (ITIs) and placement drives for 1,000 graduates are positive moves.

Moreover, there has been an allocation for sewage and water treatment plants at tourist locations, amounting to Rs 80 crore.

However, KCCI expressed disappointment over the reduced budget size and noted the absence of funding for water management amid climate change challenges. The 2024-25 budget size was Rs 1.18 lakh crore.

“KCCI had anticipated that this year’s budget would exceed the previous year’s allocation. However, this expectation was not met, as the current budget size has fallen short of last year’s figures.

“This reduction raises concerns among industry/business stakeholders who were looking for more substantial fiscal support to address pressing economic challenges and stimulate business activities,” the chamber said.

It said KCCI had hoped the Budget would focus on addressing the high unemployment rate.

“In addition to tackling job creation, there is an urgent need for effective Solid Waste Management solutions to mitigate the environmental impacts of waste. The budget should have also prioritised the regulation of common STPs to prevent the discharge of liquid waste into rivers and water bodies, thereby protecting public health and preserving ecological integrity,” KCCI said.