Vikram Sharma
JAMMU: The two premier business institutions of Jammu have expressed sharply contrasting views on the budget presented by Chief Minister Omar Abdullah in the legislative assembly today. While one has hailed it as a balanced and progressive financial roadmap, the other has criticized it for neglecting the existing industrial units of Jammu and Kashmir, calling it a major setback to the industry.
The Indian Chamber of Commerce (ICC), Jammu Chapter, has lauded the budget as a well-structured and growth-oriented plan aimed at accelerating economic prosperity in the region.
ICC Chairman Rahul Sahai welcomed the initiatives taken for the Micro, Small, and Medium Enterprises (MSME) sector, particularly the proposed allocation of Rs. 50 crore for an incubation center. He also highlighted the provision for price preference for J&K-based MSMEs on the Government e-Marketplace (GeM) portal and the expansion of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme under the RAMP initiative, which he believes will significantly benefit small businesses.
“The proposal to establish a PM Unity Mall in Jammu dedicated to crafts and handicrafts is a commendable step. This initiative will empower local artisans and enhance the visibility of ‘Brand J&K’ at both national and international levels,” Sahai stated. He further praised the allocation of Rs. 625 crore for industrial development and the government’s commitment to sustainability by designating 2025 as the ‘J&K Green Mission Year.’
According to Sahai, the budget lays a solid foundation for the economic transformation of Jammu and Kashmir, ensuring industrial growth, infrastructure development, and social welfare. The government’s focus on MSMEs, tourism, healthcare, education, and sports reflects a holistic approach toward inclusive development.
“We appreciate the government’s efforts in implementing policy interventions that will significantly enhance the ease of doing business in J&K,” he added.
However, in stark contrast, the Federation of Industries Jammu (FOIJ) has strongly criticized the budget, describing it as “anti-existing industry.” FOIJ Chairman Lalit Mahajan expressed deep disappointment, arguing that instead of offering relief and support to struggling industries, the budget has made survival even more challenging for them.
Mahajan pointed out that the proposed budget earmarks Rs. 130 crore for turnover incentives and subsidies, including state incentives such as subsidies for diesel generator (DG) sets, marketing support for the handloom and handicraft sectors, and other industrial incentives. However, he argued that this amount is insufficient and does not align with the previously announced turnover incentives of 3% and 2%.
“During pre-budget discussions, Chief Minister Omar Abdullah assured us that all issues concerning the industrial sector raised by the Federation of Industries, Jammu, would be addressed. However, the relief provided to the existing industrial sector in the budget is negligible,” Mahajan said.
Despite its dissatisfaction, the FOIJ acknowledged the government’s positive step in implementing the New Industrial Policy, which includes marketing support in the form of price and purchase preference for MSME units. However, it urged the government to take suggestions from stakeholders before finalizing the policy.
Meanwhile, the Kashmir Chamber of Commerce and Industry (KCCI) has welcomed the budget, emphasizing that several of its recommendations have been incorporated. According to KCCI, the budget aligns with the aspirations of the business community in Jammu and Kashmir.
KCCI particularly appreciated the provision of 200 units of free electricity for Antyodaya Anna Yojana (AAY) households and the introduction of free transport services for women. The chamber believes these measures promote social equity and support economically weaker sections.
Furthermore, it praised the allocation of Rs. 50 crore for financial aid and mentorship programs aimed at fostering entrepreneurship among emerging business owners.
“The development of 46 new industrial estates, with an allocation of Rs. 310 crore, along with Rs. 100 crore for upgrading existing estates, indicates a strong focus on industrial growth, which is a welcome move,” KCCI stated.
The chamber also welcomed the increased budgetary allocation for the agriculture and horticulture sectors. The budget sets aside Rs. 2,221 crore, marking an increase of Rs. 332 crore over the previous year. KCCI noted that this boost will be instrumental in expanding fish production and establishing 50 fruit processing units, thereby strengthening the agricultural economy of the region.
Overall, the budget has elicited mixed reactions from Jammu’s business institutions. While the ICC and KCCI have largely viewed it as a step toward economic progress and inclusive development, the FOIJ remains critical, arguing that the budget fails to support the existing industrial sector.
