Mixed Reactions: J & K Industry Cheers, Workers Raise Concerns

(MENAFN- Kashmir Observer) Srinagar- The Jammu and Kashmir Budget 2026–27, presented by Chief Minister Omar Abdullah on Friday, evoked mixed reactions, with business and industrial bodies welcoming long-pending initiatives, while trade groups and employee unions flagged concerns over sectoral relief, exports and regularisation of temporary workers.

Trade leaders said the Budget, with a total net outlay of Rs 1,13,767 crore, a projected GSDP of Rs 3,15,822 crore and a fiscal deficit of 3.69 percent, reflects a focus on infrastructure, welfare and sectoral development. However, they pointed out gaps in targeted relief for tourism, MSMEs and trade.

ADVERTISEMENTKCCI welcomes long-pending proposals

The Kashmir Chamber of Commerce and Industry welcomed proposals such as the Unity Mall with Rs 200 crore support and the Centre of Excellence in Artificial Intelligence with Rs 20 crore, calling them long-standing demands of the business community.

KCCI said the Unity Mall would improve market access for artisans and craftsmen and termed the Self-Certification Scheme for MSMEs, offering a three-year grace period for clearances, a positive step.

The Chamber also appreciated social welfare measures including six free LPG cylinders for Antyodaya Anna Yojana households, full fee waivers for students from Class 9 to 12 in government schools and colleges, enhanced disability pensions benefiting over 1.62 lakh people and free government transport for persons with disabilities.

Support for agriculture and horticulture through crop insurance, new Controlled Atmosphere stores, milk processing plants, irrigation subsidies and Embryo Transfer Technology labs was also welcomed.

However, KCCI expressed concern over the absence of interest subvention or credit support for tourism, trade, transport and MSMEs, especially in the backdrop of the economic slowdown after the April 22 Pahalgam attack. The Chamber also flagged declining exports and lack of clear incentives for handicrafts and handloom sectors.

FCIK calls Budget visionary, flags gaps

The Federation of Chambers of Industries Kashmir described the Budget as a visionary blueprint, praising its focus on economic revival, participatory governance and investment-friendly reforms.

FCIK welcomed the Holistic Agriculture Development Programme, amendments to the Industrial Policy, self-certification for compliance and support for sick industrial units, but raised concerns over unresolved issues such as power amnesty, VAT relief and industrial bottlenecks.

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