SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) has hailed the 2026–27 Budget presented by Chief Minister Omar Abdullah as a visionary and reform-driven blueprint, poised to transform Jammu and Kashmir into a modern, progressive, and economically vibrant region—anchored in resilience and propelled by hope.
FCIK, in a statement issued here, appreciated the Chief Minister’s resolve that the soul of Jammu and Kashmir has been forged through testing times, with a government committed to turning obstacles into stepping stones and aspirations into achievements.
The Federation sees this spirit reflected in the Budget’s focus on economic revival, inclusive growth, and participatory governance, and welcomed the commitment to building a business-friendly ecosystem that fosters innovation and attracts investment.
FCIK noted the strong macro-economic outlook outlined in the Budget, with GSDP projected at 2,88,422 crore for 2025–26 at 11 percent growth, and sectoral composition of Primary 20%, Secondary 18%, and Tertiary 62%, underscoring the need for production-oriented growth alongside services for balanced and sustainable development.
The Federation appreciated the continued emphasis on capital expenditure, infrastructure creation, and reform-linked investments, essential for economic capacity building.
While recognizing the importance of fiscal prudence, FCIK emphasized that enhanced Capex—even at the cost of a higher fiscal deficit for a limited period—is vital to build durable economic assets.
FCIK lauded the Budget’s strong emphasis on agriculture and allied sectors, including horticulture, dairy, fisheries, apiculture, irrigation, protected cultivation, and digital farmer services.
FCIK, which had long advocated for it, emphasized that the Holistic Agriculture Development Programme—implemented in a challenge mode and comprising 29 key projects—has the potential to strengthen rural livelihoods, enhance productivity, expand value chains, and cement the primary sector as the backbone of the economy.
The Federation welcomed the proposed amendments to the Industrial Policy aimed at sustaining industrial growth and emphasized that all corrective measures should be closely aligned with stakeholder inputs and suggestions.
FCIK urged that a comprehensive policy—including a revised public procurement framework and measures for the revival of sick industrial units—be finalized and implemented before the start of the new fiscal year.
The decision to grant sick industrial units the same incentives as new units is a progressive step, expected to facilitate rehabilitation, modernization, capacity upgradation, and employment protection. Similarly, the move to allow self-certified regulatory compliances is a necessary reform that should be extended across the entire industrial ecosystem.
However, the Federation expressed disappointment that key measures, including power amnesty on interest and demand charges for outstanding arrears, VAT relief on regulatory compliances, and resolutions for other industrial bottlenecks, were not included in the Budget. FCIK remains hopeful that these critical interventions will be announced alongside the broader policy framework.
FCIK appreciated the people-centric social measures, including six free LPG cylinders for eligible households and the solarisation programme, which will reduce energy costs, enhance power security, and promote sustainable growth.
While welcoming the Budget’s intent, FCIK expressed concern over growing revenue expenditure on salaries, pensions, and debt servicing, which continues to strain fiscal space.
The Federation noted the over-dependence on Central devolution and urged measures to enhance own-revenue mobilisation to support diverse sectors and ambitious expenditure plans. FCIK also emphasized that growth and investment projections must be matched with strong implementation capacity at district and grassroots levels.
FCIK expressed optimism that, with effective implementation, policy continuity, and sustained stakeholder engagement, the Budget 2026–27 can play a transformative role in shaping a self-reliant, inclusive, and future-ready economy for Jammu and Kashmir.
FCIK hails J&K Budget as ‘visionary blueprint’ for region’s ‘resilient, self-sustaining’ economy
