KCCI Warmly Welcomes J&K Budget 2025-26
Srinagar 07 March 2025: The Kashmir Chamber of Commerce and Industry (KCCI) warmly welcomes the budget presented by Chief Minister Omar Abdullah. KCCI acknowledges that many of its recommendations have been incorporated, aligning with the aspirations of the business community in Jammu and Kashmir. The budget includes significant measures promoting social equity, industrial growth, and cultural heritage.
Key Measures Promoting Social Equity
Provision of 200 Units of Free Electricity for AAY Households: KCCI appreciates the provision of 200 units of free electricity for families under the Antyodaya Anna Yojana (AAY). This measure aims to reduce the financial burden on economically vulnerable households, ensuring a reliable electricity supply.
Free Transport Services for Women: KCCI welcomes the introduction of free ridership for all women in government-owned public transport, including e-buses. This initiative, announced on the eve of International Women’s Day, promotes gender equality and enhances access to education and employment opportunities for women.
Supporting Local Artisans and MSMEs
Establishment of PM Unity Malls: KCCI is pleased with the announcement of the establishment of PM Unity Malls in Srinagar and Jammu to support local artisans. This demand for an exhibition mart in Kashmir was presented by KCCI at various levels of governance, both at the Centre and in J&K.
Strategic Investment Plan for MSMEs: KCCI appreciates the allocation of Rs. 75 crore for a strategic investment plan for Micro, Small, and Medium Enterprises (MSMEs). However, KCCI had hoped for more funding to revive the industrial sector and general trade in the budget.
Commitment to Cultural Heritage
Support for Handicrafts and Handloom Cooperatives: KCCI welcomes the budget support for 2,000 handicrafts and handloom cooperatives, reflecting a strong commitment to preserving and promoting cultural heritage. This initiative aims to provide financial support and mentorship programs for artisans and craftsmen.
Financial Aid and Mentorship Programs: The chamber appreciates the allocation of Rs. 50 crore for financial aid and mentorship programs for emerging entrepreneurs. This measure aims to nurture and support new business ventures, fostering innovation and economic growth.
Focus on Industrial Growth
Development of Industrial Estates: KCCI welcomes the development of 46 new industrial estates with Rs. 310 crore allocated, along with Rs. 100 crore for upgrading existing estates. This indicates a focus on industrial growth and economic development in the region.
Boosting Agriculture and Horticulture
Increased Budget Allocation: KCCI appreciates the enhancement of the budgetary allocation to Rs. 2221 crore, an increase of Rs. 332 crore over the last budget. This boost is expected to benefit the agriculture and horticulture sectors, with plans to increase fish production and establish 50 fruit processing units.
Reviving Tourism
Promotion Budget for Tourism: KCCI believes that the tourism sector will benefit from a doubled promotion budget of Rs. 36 crore and Rs. 50 crore allocated for developing new destinations. This initiative aims to attract more tourists and revive tourism assets in the region.
Education Initiatives
Introducing New Courses in ITIs: KCCI is pleased with initiatives in education, such as introducing new courses in 10 Industrial Training Institutes (ITIs) and placement drives for 1,000 graduates. These measures aim to improve the quality of education and provide employment opportunities for young graduates.
Sustainable Transportation
Introduction of E-Buses: The budget includes the introduction of 200 E-Buses under the PM E-Bus Sewa program, promoting sustainable transportation. This initiative aims to reduce environmental impact and enhance the public transport system in Srinagar and Jammu.
Infrastructure Development
Hydro Projects: KCCI is optimistic about the expedited completion of major hydro projects by 2027, which is expected to significantly boost the region’s power generation capacity.
Sewage and Water Treatment Plants: Allocations for sewage and water treatment plants at tourist locations, amounting to Rs. 80 crore, are a welcome step. This initiative aims to improve sanitation facilities and protect the environment.
Concerns and Recommendations
Disappointment Over Budget Size: However, KCCI expresses disappointment over the lack of an increased budget for 2025-26 and notes the absence of funding for water management amid climate change challenges. KCCI had anticipated that this year’s budget would exceed the previous year’s allocation, but this expectation was not met, raising concerns among industry and business stakeholders.
Addressing Unemployment: KCCI had hoped the budget would focus on addressing the high unemployment rate, which stands at a staggering 32.8 percent in urban areas. There is an urgent need for effective Solid Waste Management solutions to mitigate the environmental impacts of waste. The budget should have also prioritized the regulation of common Sewage Treatment Plants (STPs) to prevent the discharge of liquid waste into rivers and water bodies, thereby protecting public health and preserving ecological integrity.
Bottom-Line
Overall, KCCI warmly welcomes the J&K Budget 2025-26 presented by Chief Minister Omar Abdullah. The budget includes significant measures promoting social equity, industrial growth, cultural heritage, and sustainable development. While there are some concerns and areas for improvement, the budget reflects a commitment to addressing the needs and aspirations of the people of Jammu and Kashmir.
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NO:KCC&I/PN/03/2025/ 7th March, 2025
PRESS NOTE
The Kashmir Chamber of Commerce and Industry (KCCI) warmly welcomes the budget presented by Chief Minister Omar Abdullah, highlighting that many of its recommendations have been incorporated, which aligns with the aspirations of the business community in Jammu and Kashmir.
KCCI welcomes the provision of 200 units of free electricity for AAY households and the introduction of free transport services for women, both key measures promoting social equity.
KCCI welcomes the announcement of the establishment of PM Unity Malls in Srinagar and Jammu to support local artisans, this demand for establishing exhibition mart in Kashmir was presented by KCCI at different levels of governance both at centre as well as in J&K. Additionally. 75 crore allocation for a strategic investment plan for Micro, Small, and Medium Enterprises (MSMEs) is good, but KCCI had hoped for more funding for the revival of industrial sector and general trade in the Budget.
KCCI welcomes budget support for 2,000 handicrafts and handloom cooperatives, reflecting a strong commitment to cultural heritage.
The chamber also appreciates the allocation of Rs. 50 crore for financial aid and mentorship programs for emerging entrepreneurs.
The development of 46 new industrial estates with Rs. 310 crore allocated, along with Rs. 100 crore for upgrading existing estates, indicates a focus on industrial growth, which is a welcome move.
KCCI also appreciates that the enhancement of budgetary allocation of Rs, 2221 crores an increase of Rs. 332 crore over last budget which will boost the agriculture and horticulture sectors, more so, with plans to increase fish production and establishing 50 fruit processing units. KCCI believes that the tourism sector will also benefit from a doubled promotion budget of Rs. 36 crore and Rs. 50 crore allocated for developing new destinations, alongside plans to revive tourism assets.
KCCI is pleased with initiatives in education, such as introducing new courses in 10 Industrial Training Institutes (ITIs) and placement drives for 1,000 graduates. Additionally, the budget includes 200 E-Buses under the PM E-Bus Sewa program, promoting sustainable transportation, and aims for the expedited completion of major hydro projects by 2027.
Finally, allocations for sewage and water treatment plants at tourist locations, amounting to Rs. 80 crore is a good step .
However, KCCI expresses disappointment over the lack of an increased budget for 2025-26 and notes the absence of funding for water management amid climate change challenges.
KCCI had anticipated that this year’s budget would exceed the previous year’s allocation. However, this expectation was not met, as the current budget size has fallen short of last year’s figures. This reduction raises concerns among industry/business stakeholders who were looking for more substantial fiscal support to address pressing economic challenges and stimulate business activities.
Further, KCCI had hoped the budget would focus on addressing the high unemployment rate, which, according to the MOSPFI, stands at a staggering 32.8 percent in urban areas. In addition to tackling job creation, there is an urgent need for effective Solid Waste Management solutions to mitigate the environmental impacts of waste. The budget should have also prioritised the regulation of common STPs to prevent the discharge of liquid waste into rivers and water bodies, thereby protecting public health and preserving ecological integrity.
Faiz Ahmad Bakshi
Secretary General
The Kashmir Chamber of Commerce & Industry INC.
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TEL: 0194-2455446/2482176
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E-MAIL : thekashmirchamber@gmail.com
Website : www.thekcci.in
