SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) on Thursday described the Jammu and Kashmir Budget 2026–27, presented by Chief Minister Omar Abdullah, as a reform-driven and forward-looking blueprint aimed at building a resilient and self-sustaining economy in the Union Territory.
In a statement, the Federation said the Budget reflects a focus on economic revival, inclusive growth and participatory governance, and signals the government’s intent to create a business-friendly environment that encourages innovation and attracts investment.
FCIK noted that the Budget projects the Gross State Domestic Product (GSDP) at Rs 2,88,422 crore for 2025–26, registering an estimated growth of 11 percent. The sectoral composition includes 20 percent from the primary sector, 18 percent from the secondary sector and 62 percent from the tertiary sector. The Federation said this distribution underscores the need to strengthen production-oriented sectors alongside services to ensure balanced and sustainable development.
The industry body welcomed the continued emphasis on capital expenditure, infrastructure development and reform-linked investments, describing them as essential for expanding economic capacity. It said that higher capital expenditure, even at the cost of a temporary rise in fiscal deficit, would help create durable assets and long-term growth.
FCIK also appreciated the focus on agriculture and allied sectors, including horticulture, dairy, fisheries, apiculture, irrigation, protected cultivation and digital services for farmers. It said the Holistic Agriculture Development Programme, comprising 29 projects and implemented in a challenge mode, has the potential to improve rural livelihoods, increase productivity and strengthen value chains.
On the industrial front, the Federation welcomed proposed amendments to the Industrial Policy aimed at sustaining growth. It urged the government to align corrective measures with stakeholder inputs and called for the finalisation of a comprehensive policy framework, including a revised public procurement mechanism and revival measures for sick industrial units, before the new fiscal year begins.
The decision to extend the same incentives to sick industrial units as those available to new units was described as a positive step expected to aid rehabilitation, modernisation and employment protection. FCIK also supported the move to allow self-certified regulatory compliances and sought its extension across the industrial ecosystem.
However, the Federation expressed disappointment over the absence of certain measures, including power amnesty on interest and demand charges for outstanding arrears, VAT relief on regulatory compliances and other pending industrial issues. It said these interventions remain important for easing operational bottlenecks.
FCIK welcomed the Budget’s social welfare provisions, including six free LPG cylinders for eligible households and the solarisation programme, stating that these steps would help reduce energy costs, improve power security and promote sustainable development.
At the same time, the Federation flagged concerns over rising revenue expenditure on salaries, pensions and debt servicing, which it said continues to constrain fiscal space. It also pointed to the Union Territory’s dependence on Central devolution and called for stronger own-revenue mobilisation to support planned expenditure.
The Federation emphasised that growth and investment targets must be supported by effective implementation at district and grassroots levels. It expressed optimism that with policy continuity and stakeholder engagement, the Budget could contribute to building a self-reliant and inclusive economy in Jammu and Kashmir.
