Crop insurance, fiscal relief and MSME revival dominate pre-Budget consultations
Srinagar, Jan 23: The Jammu and Kashmir Government on Friday held pre-Budget consultations with representatives of trade, tourism and industry, during which Chief Minister Omar Abdullah assured stakeholders of an aggressive nationwide tourism promotion drive in the coming year.
The meeting saw detailed presentations from key trade bodies, with a common thrust on reviving tourism, supporting small and medium enterprises (MSMEs) and providing fiscal relief to struggling sectors.
President of the Kashmir Chamber of Commerce and Industry (KCCI), Javid Ahmad Tenga, said the Chamber had prioritised crop insurance, power tariff amnesty for commercial units and infrastructure support for sports and tourism in its recommendations for the upcoming Budget.
“We are expecting the government to consider crop insurance and amnesty for power dues of commercial units,” Tenga said, adding that business activity in the tourism sector had remained subdued. He noted that the Chief Minister had assured aggressive promotion across the country, expressing hope that tourism would pick up this year.
Traders seek liquidity support
Separately, the Kashmir Traders and Manufacturers Federation (KTMF), led by its president Mohammad Yaseen Khan, submitted a comprehensive memorandum highlighting liquidity stress, high operating costs, regulatory challenges and seasonal slowdowns affecting traders. The Federation sought interest subvention on working capital loans, a trader-friendly One-Time Settlement (OTS) scheme and safeguards against coercive recoveries from genuine borrowers.
KTMF also pressed for the creation of a Market Fire Safety and Fire-Affected Traders Relief Fund, improved parking infrastructure and clear rehabilitation policies for traders displaced by urban development and road projects.
Industry flags regional imbalances
The Federation of Chambers of Industries Kashmir (FCIK) drew attention to regional and sub-regional imbalances in industrial infrastructure, particularly the shortage of developed industrial land in northern districts of Kashmir and hilly areas. It proposed a three-pronged MSME revival strategy, including loan restructuring under the GO 47-IND/RBI framework, a dedicated MSME Asset Reconstruction Company and a government-led one-time settlement for stressed units.
The FCIK also advocated a public procurement overhaul to ensure meaningful market access for local MSMEs, GST reimbursement on value addition, interest subvention and regulatory exemptions. It further called for mission-mode implementation of the Holistic Agriculture Development Programme (HADP), power amnesty and non-intrusive revenue measures, including PPP-led infrastructure development.
Sources present at the meeting said the submissions by KCCI, KTMF and FCIK broadly converged on restoring trade confidence, reviving tourism, correcting structural imbalances and promoting inclusive growth.
Stakeholders expressed optimism that the J&K Budget 2026–27 would incorporate these recommendations, providing much-needed momentum to the Union Territory’s economy.
