Overall budget progressive, but falls short of J-K's expectations: Rahul Sahai

Chairman of the Indian Chamber of Commerce and Industries in Jammu and Kashmir, Rahul Sahai, on Sunday said the Union Budget 2026-27 is progressive and sustainable for the country as a whole but failed to meet the expectations of the UT as a conflict-affected region.

Chairman of the Indian Chamber of Commerce and Industries in Jammu and Kashmir, Rahul Sahai, on Sunday said the Union Budget 2026-27 is progressive and sustainable for the country as a whole but failed to meet the expectations of the UT as a conflict-affected region. Sahai said the budget reflects a strong focus on sustainable infrastructure development and appears balanced from a national perspective. ''Overall, it is a progressive budget in terms of the country. It is a sustainable budget. But from a region-specific point of view, it is not as per our expectations in terms of industries, especially considering that Jammu and Kashmir is a conflict zone,'' he told reporters here. He said that as one looks at the overall budget, it clearly appears to be focused on sustainable infrastructure development. ''From that perspective, the budget seems balanced,'' he said, adding that increased public capital expenditure and infrastructure push remain among the biggest positives. He welcomed the enhanced allocation for infrastructure, particularly the focus on Dedicated Freight Corridors, National Waterways, Urban Economic Regions, and development of Tier-2 and Tier-3 cities, terming it a positive step towards economic expansion. Highlighting another key announcement, Sahai said the Rs 10,000 crore SME Growth Fund and strengthening of the Trade Receivables Discounting System (TReDS) indicate a serious effort by the government to improve funding access for MSMEs. ''TReDS helps in bill discounting, although awareness about it is still limited. Through this, a serious effort is visible to provide funding to MSMEs and strengthen them,'' he said. Sahai also appreciated the government's emphasis on domestic manufacturing and strategic sectors, including revival of 200 legacy industrial clusters, electronic components manufacturing, textile chemicals, and advanced manufacturing, stating that the commitment in these areas is clearly visible. However, he said that the industry in Jammu and Kashmir had expected greater financial support, particularly for the MSME sector. ''Our biggest expectations were with regard to Jammu and Kashmir, that it should receive a little more funding, especially to strengthen the MSME sector,'' he said. He added that there appears to be no specific provision in the budget for the existing MSMEs and industries in Jammu, though clarity will emerge once the detailed provisions are examined. ''So far, there does not appear to be any special package for the manufacturing industry that already exists in Jammu and Kashmir. In addition, there is no visible region-specific credit support or interest subvention framework,'' Sahai said. He stressed the need for customised policy instruments for border and post-conflict zones like Jammu and Kashmir, saying local industries often bear the first impact of security-related incidents. ''Everyone is a witness to the unique challenges Jammu and Kashmir faces. In such circumstances, the first impact is felt by local industry and businesses. This calls for a different approach, one that deals with industry and businesses in Jammu and Kashmir differently from other states,'' he said. Sahai said that while positive steps have been taken at the national level, there remains a noticeable absence of a targeted and special economic framework for Jammu and Kashmir in the budget.

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