Srinagar: The Federation of Chambers of Industries Kashmir (FCIK) has welcomed the 2026–27 Budget presented by Omar Abdullah, terming it a visionary and reform-driven blueprint capable of transforming Jammu and Kashmir into a modern, progressive, and economically vibrant region anchored in resilience and growth.
In a statement, FCIK appreciated the Chief Minister’s resolve to turn challenges into opportunities, noting that the spirit of resilience and participatory governance was reflected in the Budget’s focus on economic revival, inclusive growth, and a business-friendly ecosystem that fosters innovation and attracts investment.
The Federation highlighted the strong macro-economic outlook outlined in the Budget, with the Gross State Domestic Product (GSDP) projected at ₹2,88,422 crore for 2025–26, registering 11 percent growth. It noted the sectoral composition—Primary 20 percent, Secondary 18 percent, and Tertiary 62 percent—underscoring the need for production-oriented growth alongside services to ensure balanced and sustainable development.
FCIK welcomed the continued emphasis on capital expenditure, infrastructure creation, and reform-linked investments, describing them as essential for building long-term economic capacity. While acknowledging the importance of fiscal prudence, the Federation said enhanced capital spending—even at the cost of a higher fiscal deficit for a limited period—was necessary to create durable economic assets.
The industry body lauded the strong focus on agriculture and allied sectors, including horticulture, dairy, fisheries, apiculture, irrigation, protected cultivation, and digital farmer services. It reiterated that the Holistic Agriculture Development Programme, comprising 29 key projects and implemented in a challenge mode, has the potential to strengthen rural livelihoods, enhance productivity, expand value chains, and reinforce the primary sector as the backbone of the economy.
FCIK also welcomed proposed amendments to the Industrial Policy aimed at sustaining industrial growth, while stressing that corrective measures should be aligned with stakeholder inputs. It urged the government to finalize and implement a comprehensive policy—covering a revised public procurement framework and revival measures for sick industrial units—before the start of the new fiscal year.
The Federation termed the decision to extend incentives to sick industrial units at par with new units as a progressive step that could facilitate rehabilitation, modernisation, capacity upgradation, and employment protection. It also welcomed the move to allow self-certified regulatory compliance and called for its extension across the industrial ecosystem.
However, FCIK expressed disappointment over the exclusion of key measures such as power amnesty on interest and demand charges for outstanding arrears, VAT relief on regulatory compliances, and resolutions to other industrial bottlenecks. It said these interventions remain critical and hoped they would be announced alongside the broader policy framework.
The Federation appreciated people-centric social measures, including the provision of six free LPG cylinders for eligible households and the solarisation programme, noting these would reduce energy costs, enhance power security, and promote sustainable growth.
At the same time, FCIK flagged concerns over rising revenue expenditure on salaries, pensions, and debt servicing, which it said continues to constrain fiscal space. It also pointed to over-dependence on Central devolution and called for enhanced own-revenue mobilisation, alongside stronger implementation capacity at district and grassroots levels to match growth and investment projections.
Expressing optimism, FCIK said that with effective implementation, policy continuity, and sustained stakeholder engagement, the Budget 2026–27 can play a transformative role in shaping a self-reliant, inclusive, and future-ready economy for Jammu and Kashmir.
Meanwhile, the Indian Chamber of Commerce (ICC), Jammu Chapter, has welcomed the Jammu & Kashmir Budget 2026–27 presented by Chief Minister and Finance Minister Omar Abdullah, describing it as progressive and fiscally stable in spite of limited funding availability, and reflective of a balanced and reform-oriented approach to governance.
While attending the budget session in J&K legislative assembly in speakers gallery and reacting to the Budget, ICC Chairman Jammu, Rahul Sahai, said that the government has demonstrated fiscal prudence and strategic prioritisation while addressing development needs amid economic constraints, security challenges and recent natural calamities.
Sahai appreciated the focus on capital expenditure, infrastructure creation and governance reforms, particularly the inclusion of Jammu & Kashmir under the Special Assistance to States for Capital Investment (SASCI) scheme, which provides long-term interest-free funding for infrastructure and disaster mitigation. He said that sustained investment in power, roads, health, education, agriculture, tourism, skilling and employment generation will help stabilise the economy and create long-term growth opportunities across the Union Territory.
Referring to the industrial and MSME sector, Sahai noted that the Budget acknowledges the strong industrial performance achieved in recent years, including increased investments, job creation, startup growth and improved Ease of Doing Business rankings. He welcomed the proposed amendments to the J&K Industrial Policy 2021–30 aimed at sustaining industrial growth beyond the NCSS scheme. However, he emphasised that industry now looks forward to a robust, clearly defined and forward-looking industrial policy that supports both existing and new industries.
“The Budget is progressive and stable despite limited fiscal space, but industry expects a robust new industrial policy for existing as well as new units, at par with the incentives, certainty and long-term support offered under the NCSS scheme. Existing industries require structured turnover-linked incentives, rationalisation of power costs, logistics support and continuity in policy to remain competitive and expand operations,” Sahai said.
He further stated that a strong and competitive industrial ecosystem is essential for employment generation, youth engagement and balanced regional development. Enhanced allocations for power development, physical connectivity, Mission YUVA, skilling, tourism diversification and MSME support were welcomed, as these sectors together create a multiplier effect for economic revival. Sahai reiterated that with effective execution and timely announcement of an industry-friendly industrial framework, Jammu & Kashmir can emerge as a preferred investment destination and a model of sustainable and inclusive economic growth.
Sahai also placed on record his appreciation for the Atal Dullo Chief Secretary, Santosh Vaidya Finance Secretary and all Administrative Secretaries and officers involved in the preparation of the Budget, acknowledging their efforts in crafting a realistic, reform-oriented and development-focused fiscal roadmap under challenging circumstances. He stated that continued coordination between the government and stakeholders will be key to translating budgetary intent into tangible outcomes on the ground. The Indian Chamber of Commerce, Jammu Chapter, reaffirmed its commitment to working closely with the Government to support policy formulation, facilitate investments and ensure that economic growth translates into jobs, resilience and prosperity for the people of Jammu & Kashmir.
