Srinagar: While welcoming the Union Budget’s emphasis on strengthening the manufacturing sector, supporting MSMEs, promoting exports, and expanding capital expenditure, the Federation of Chambers of Industries Kashmir (FCIK) has stated that these measures have the potential to bring much-needed stability to the MSME and manufacturing sector across the country.
However, the apex industrial body has expressed deep disappointment over the Budget’s complete neglect of the pressing regional needs of Jammu & Kashmir’s industrial sector, despite these concerns having been repeatedly brought to the attention of the Union Government by the UT administration and industry stakeholders.
“Despite its significant potential in MSMEs, textiles, handicrafts, agro-industries and exports, Jammu & Kashmir has faced persistent structural challenges, compounded by prolonged spells of disturbance and, more recently, the 2019 re-organisation and the COVID-19 pandemic,” FCIK stated.
In this backdrop, the industry had strongly expected the Union Budget to announce a dedicated package and targeted fiscal measures for the region, particularly for existing and stressed industrial units.
FCIK observed that Jammu & Kashmir has largely remained outside the country’s mainstream industrial growth trajectory for decades. Targeted interventions at this juncture could have played a transformative role, not only in helping local MSMEs recover and expand, but also in enabling the region to contribute meaningfully to the broader national growth story.
At the same time, FCIK acknowledged that several measures announced in the Union Budget—such as the acceleration of capital expenditure, export competitiveness initiatives, MSME liquidity and equity support, the Self-Reliant India Fund, and incentives for technology adoption—provide an important national framework for industrial growth. These initiatives are positive steps toward improving scalability, competitiveness, and long-term sustainability of enterprises across the country.
“If these national initiatives are complemented with region-specific initiatives, incentives and focused implementation strategies, they can promote inclusive development, strengthen integration of J&K enterprises into national and global value chains, and unlock the potential of the Union Territory’s industrial and entrepreneurial base,” FCIK stated.
While appreciating the Government’s vision to raise manufacturing’s contribution to 25 per cent of GDP by 2047, FCIK emphasized that achieving this ambitious goal will require more than uniform, pan-India policies. It will necessitate stronger support to scale existing capacities, upgrade infrastructure, build skills, and extend targeted incentives, particularly in regions such as Jammu & Kashmir that have historically remained on the margins of industrial growth.
FCIK also expressed concern that the modest increase of ₹2,000 crore in central allocations to the UT government over the previous year falls far short of addressing the region’s long-standing developmental gap or providing the stimulus required for revival of existing industrial units.
Reiterating its commitment to constructive engagement, FCIK stated that it remains ready to work closely with the Government and all stakeholders to ensure that the intent of the Union Budget translates into tangible, on-ground outcomes for businesses, workers, and entrepreneurs in Jammu & Kashmir.
Union budget signals push for developed India, shows strong focus on J&K: JCCI
The Union Budget 2026 reflects a strong push towards building a developed India and an additional Rs 2,000 crore allocation for Jammu and Kashmir reflects the Union government’s focus on its development, an industry official said on Sunday.
The President of the Jammu Chamber of Commerce and Industries (JCCI), Arun Gupta, said that J&K has remained under the special focus of the Union Government, and the additional allocation of Rs 2,000 crore is a direct message that its focus is on the Union Territory and its development.
“I feel that this budget reflects a move towards a developed India. Every sector has been given priority, and each has been provided adequate space,” he told reporters here.
Union Finance Minister Nirmala Sitharaman has proposed an allocation of Rs 43,290.29 crore for Jammu and Kashmir in the Budget, nearly Rs 2,000 crore higher than the current financial year.
Terming the budget as balanced, the JCCI president said that its proper implementation at the state level would ensure benefits reach people across all sectors.
He said that the budget has made provisions for sectors including industry, MSMEs, semiconductors, education, defence, agriculture and sports, ensuring balanced growth across the economy.
“As far as Jammu and Kashmir is concerned, the budget session is scheduled to begin from tomorrow. However, the increased allocation by the Union Government clearly sends a message that it is serious about the development of the Union Territory,” he said.
He said that JCCI wants Jammu and Kashmir to progress in the same way as other states are developing. “In fact, I believe that with a special approach, the Union Government should focus on Jammu and Kashmir. Jammu and Kashmir has remained under the special focus of the Union Government, and the additional allocation of Rs 2,000 crore is a direct message that its focus is on Jammu and Kashmir and its development,” he added.
He said that Jammu and Kashmir has remained under the special focus of the Union Government, and the additional allocation indicates its commitment towards accelerating development in the region.
Responding to concerns over possible misuse of funds, he said that there is clarity in the government’s approach and focus.
Referring to repeated statements by Chief Minister Omar Abdullah during pre-budget discussions and industrial development programmes, he said that the government has emphasised ensuring the survival of existing industries and providing them necessary support.
He further said that sectors like tourism, education and other key areas would also receive focused attention. “Our effort will be to work with sincerity across all sectors and ensure that no stakeholder feels neglected,” he added.(PTI)
