Budget aligns with aspirations of business community: KCCI

The Kashmir Chamber of Commerce and Industry (KCCI), a leading trade body in the Valley, on Friday welcomed the UT Budget stating that many of its “recommendations have been incorporated”, which aligns with the “aspirations of the business community in Jammu and Kashmir.”

A statement by KCCI said the body welcomes the provision of 200 units of free electricity for AAY households and the introduction of free transport services for women, both key measures promoting social equity.

KCCI said it also appreciates that the enhancement of budgetary allocation of Rs 2,221 crore, an increase of Rs 332 crore over last budget which will “boost the agriculture and horticulture sectors, more so, with plans to increase fish production and establish 50 fruit processing units.”

“The tourism sector will also benefit from a doubled promotion budget of Rs 36 crore and Rs 50 crore allocated for developing new destinations, alongside plans to revive tourism assets,” it stated.

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.

However, KCCI expressed disappointment over the lack of an increased budget for 2025-26 and noted the absence of funding for water management amid climate change challenges.

The body said it 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,” it said.

KCCI said it hoped the budget would focus on addressing the high unemployment rate, which, according to the MOSPFI, stands at a staggering 32.8 per cent in urban areas.

“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 body said.