J&K gets Rs 41,000 crore allocation in Budget that evoked optimism and concern in UT

Lt Governor Manoj Sinha hailed the Budget as a “pragmatic Budget for Viksit Bharat”. He expressed gratitude to Prime Minister Narendra Modi and said the revised tax rate structure was a historic move to bring change in the lives of the middle class.

“This Budget will further boost the infrastructure sector, MSMEs, energy sector, innovation, employment generation, and push transformative reforms in key sectors for more inclusive and more sustainable growth,” he said.

The Kashmir Chamber of Commerce and Industry (KCCI) expressed both optimism and concern over the Union Budget, saying that while several of its initiatives are commendable, the much-needed special economic revival package for J&K was missing.

“We anticipated the introduction of an industrial development package for Jammu and Kashmir, recognising its critical role in transforming the region into a thriving industrial hub. Such a package is essential, not only for fostering local economic growth but also for aligning with India’s broader vision of becoming the world’s third-largest economy,” it said in a statement issued by its secretary general, Faiz Ahmad Bakshi.

“The expectation for a 20% increase in central allocation has not been met, with a reduction of over ₹1,000 crore in central assistance, which raises serious concerns about the region’s development trajectory,” the statement added.

At the same time, the Kashmir Chamber hailed the decision to exempt those earning up to Rs 12 lakh annually from paying income tax. It also welcomed the introduction of a new scheme targeting 5 lakh first-time entrepreneurs, with a special focus on women, Scheduled Castes, and Scheduled Tribes. The provision of term loans up to Rs 2 crore over the next five years is a positive step that will empower many to launch their ventures, fostering innovation and economic diversification, the statement said.

KCCI also commended the proposal to extend the export time frame for handicraft goods from six months to one year, with the possibility of an additional three-month extension. This flexibility will significantly benefit exporters, and has been a long pending demand of KCCI.

The Jammu Chamber of Commerce and Industry hailed the Union Budget as a “balanced” one that put “focus on all major sectors including defence, health, agriculture, development, exports, women, youth, lower middle class and the Make in India Mission”.

Referring to its demand for the establishment of a public sector undertaking unit in Jammu, the president of the chamber, Arun Gupta, noted that this was not announced in the Union Budget. He, however, expressed hope that in the J&K Budget, there will be major announcements on tourism in Jammu with a view to increasing footfall of tourists in the region.

(With inputs from agencies)