Tourism push, package for business growth needed, say J&K industrialists
Lalit Mahajan, chairman of the Federation of Industries, Jammu, says there is no proposal for extension of central package of incentive for the existing as well as new units of J&K
The industrial bodies have hailed the Union budget that was presented by finance minister Nirmala Sitharaman in the Parliament for the fiscal year 2025-26 on Saturday. At the same time, they have called for attention to the tourism sector and incentives for industrial units.
Arun Gupta, president of the Jammu Chamber of Commerce and Industry, described the budget as well balanced with focus on all major sectors, like defence, health, agriculture, development, exports, women, youth and lower middle-class people. He, however, felt that the budget should have made certain provisions for establishing some public sector undertakings to boost Industrial development and give a fillip to generate employment.
He also hoped that the government would announce establishment of a big tourism destination in Jammu to increase the footfall of tourists as the rail and road connectivity to Kashmir valley would “affect the economic growth of Jammu city”.
Gupta also hailed the announcement that there would be no income tax on earnings up to ₹12 lakh per annum.
Rahul Sahai, chairman of Jammu chapter’s Indian Chamber of Commerce, said the Union budget was a “well-balanced”. A key highlight is the increase in individual tax exemption from 7% to 12%, enhancing disposable income and driving economic activity, he said, adding that the upcoming direct tax bill and regulatory reforms in the non-financial sector are much-needed steps toward better governance.
“While J&K wasn’t specifically addressed in detail, future announcements regarding the NCSS (New Central Sector Scheme) and related schemes are anticipated,” he concluded.
Lalit Mahajan, chairman of the Federation of Industries, Jammu, said the budget was “industrial friendly for MSME sector and beneficial for all sections of society”.
He, however, said that there was no proposal for the extension of central package of incentive for the existing as well as new units of J&K, for which nearly 300 applications for registration were pending with the industries department of J&K.
He said the Centre should provide adequate funds for the grant of fiscal incentives for the existing industrial units.
The Kashmir Chamber of Commerce and Industry (KCCI) expressed concern over the absence of a special revival package for J&K. It said its expectation for a 20% increase in central allocation has not been met. Questioning the reduction of over ₹1,000 crore in central assistance, it said the move raised concerns about the region’s development trajectory. Notably, J&K has been allocated ₹41,000 crore in the budget.
“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,” a KCCI spokesman mentioned in a statement.
The KCCI, however, said the enhancement of the income tax exemption to ₹12 lakh is expected to provide significant relief to the middle-class families. The KCCI also welcomed the introduction of a new scheme targeting five lakh first-time entrepreneurs, with a special focus on women, scheduled castes and scheduled tribes.
The budget proposes an increase in the credit guarantee cover for micro and small enterprises (MSEs) from ₹5 crore to ₹10 crore and for startups from ₹10 crore to ₹20 crore. This initiative is expected to bolster the financial stability of local businesses and encourage entrepreneurship.”
KCCI spokesman said it is particularly pleased with the proposal to extend the export timeframe for handicraft goods from six months to one year, with the possibility of an additional three-month extension.
