Trade bodies hail steps to spur growth, rue no special package for J&K

The Kashmir Chamber of Commerce and Industry (KCCI), a prominent trade body in the Valley, expressed a “blend of optimism and concern” following the presentation of the Union Budget 2025-26 by Union Finance Minister Nirmala Sitharaman on Saturday.

A spokesperson for KCCI noted that while the Budget includes several commendable initiatives aimed at boosting economic activity, the trade body emphasised the pressing need for a tailored revival and infrastructural development package for Jammu and Kashmir, particularly given the region's persistent unemployment issues.

KCCI expressed disappointment over the absence of a special revival package for the region, highlighting the prolonged economic challenges it has faced for over three decades. The KCCI had hoped for the introduction of an industrial development package for J&K, recognising its importance in transforming the region into a thriving industrial hub. Such a package, the spokesperson argued, would not only drive local economic growth but also align with India's broader vision of becoming the world’s third-largest economy.

KCCI also praised the introduction of a new scheme aimed at supporting 5 lakh first-time entrepreneurs, particularly women, Scheduled Castes, and Scheduled Tribes. The provision of term loans up to Rs 2 crore over the next five years is seen as a positive step toward encouraging innovation and economic diversification in the region. It also expressed satisfaction with the proposal to extend the export time frame for handicraft goods from six months to one year, with the possibility of a further three-month extension. This long-pending demand, according to KCCI, will significantly benefit handicraft exporters in Jammu and Kashmir.

Jammu Chamber of Commerce and Industry (JCCI) also hailed the Union budget as “well balanced” focussing on all major sectors and expressed hope that the government will announce development of a big tourism destination in the region. JCCI President Arun Gupta, however, said the government should have made certain provisions for setting up some public sector undertakings to boost industrial development for employment generation.

“The budget is well-balanced with focus on all major sectors like defence, health, agriculture, development, exports, women, youth, lower middle class people and Make in India mission,” he said.

Gupta said they are hopeful that the government will develop a big tourism destination in Jammu to increase the footfall of tourists.