Srinagar: The Kashmir Chamber of Commerce and Industry (KCCI) has expressed a blend of optimism and concern in the absence of special financial package for Jammu and Kashmir in over the Union Budget 2025-26
While the budget includes several commendable initiatives that promise to enhance economic activity, the Valley’s top business body highlighted the pressing need for a special revival and infrastructural development package tailored to the unique challenges faced by Jammu and Kashmir particularly in the face of burgeoning unemployment.
“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,” said KCCI General Secretary Faiz Ahmad Bakshi.
He hailed income tax exemption to ₹12 lakh, saying it can provide relief to the middle-class citizens of Jammu and Kashmir.
The KCCI also hailed 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,” Bakshi added.
He welcomed the proposal to extend the export time frame. He for handicraft goods from six months to one year, with the possibility of an additional three-month extension.
This flexibility will significantly benefit exporters and was long pending demand of the KCCI, he added.
“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 be sustainable,” Bakshi said.
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.
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 home-stays 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, said the KCCI.
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