Union Budget 2026-27: Rs 2000 Cr additional allocation indicates Centre’s focus on J&K: Jammu traders

Jammu, Feb 1: Jammu business community, while asserting that Rs 2000 Cr additional allocation for J&K in Union Budget-2026-27 indicated Centre’s focus on the Union Territory, has hoped that the better percentage of it will be expended on tourism promotion in Jammu and incentives for industry sector, with focus on MSMEs.

“Since, on the face of it, it does not have much for the business community as we have found reflection in the market sentiments today, we believe it is a mixed budget and public welfare focus is appreciable,” formed the gist of first reaction of Jammu businessmen and organisations, about the central budget for the year 2026-27, presented by the Union Finance Minister Nirmala Sitharaman in the Parliament on Sunday, February 1, 2026.

Jammu Chamber of Commerce and Industry (JCCI) president Arun Gupta, while speaking to media persons, stated that the budget was balanced with almost all sectors viz., industry, MSMEs, semiconductors, education, agriculture, defence, sports, public welfare, getting equal attention, an imperative for “Viksit Bharat.”

“The focus on development push is obvious. Enhanced allocation for J&K meant that J&K and its development figured in the priority focus areas of the Centre. We want that the allocation should be spent judiciously benefitting all sectors and not ignoring crucial areas, including industries, tourism, education. During our pre-budget deliberations with the Chief Minister Omar Abdullah, we have been given assurances about the desired focus on promoting existing industries, support to sick units and overall industrial development,” Gupta said.

Anoop Mittal former president Kanak Mandi Bazar Association stated that the budget was aimed at strengthening “economic infrastructure.”

“Since it was not exactly a poll-budget, the focus was on strengthening the economy and its growth engines. However, the Income Tax Act, going to be implemented from April 1 will bring many reforms. Centre has also announced measures to increase 4G connectivity in far off areas of J&K by setting up around 700 towers. J&K budget has been enhanced by Rs 2000 Cr that is also welcome,” Mittal said.

“I will say that it is a mixed budget as there is hardly anything substantial for the banking sector and PSUs. Reaction of market conveys that there is not much for the business community,” he added.

Surinder Mahajan, former president of Raghunath Bazar Association, almost shared similar views.

He said that public welfare announcements related to Cancer medicines, establishment of AIIMS etc., were welcome but there was not much for the business community.

“Enhancement in J&K allocation is good but we expect that a good percent of it should be expended on promotion of tourism in Jammu and incentives for the business community,” Mahajan opined.

Deepak Gupta, president Traders Federation Ware House Nehru Market Jammu described the Union budget as an excellent blend of visionary thinking, pragmatic policies and economic empowerment, which would propel India decisively towards the goal of Viksit Bharat @2047.

“The Budget sends a strong and positive message of confidence to traders, entrepreneurs, investors and especially to micro, small and medium enterprises. Its focus on empowering every section of society along with economic growth makes this Budget truly distinctive,” he said.

“The continued thrust on public capital expenditure and infrastructure, including freight corridors, urban economic regions and focus on Tier-II and Tier-III cities, will significantly improve logistics efficiency and regional connectivity, critical for integrating Jammu & Kashmir with national markets,” Deepak Gupta said.

He appreciated the MSME growth strategy, including the Rs 10,000 Cr SME Growth Fund, mandatory use of the TReDS platform by CPSEs, credit guarantee support for invoice discounting and professional support through ‘Corporate Mitras’.

Lalit Mahajan, co-chairman Federation of Industries Jammu and president of the Bari Brahmana Industries Association, while hailing the Union Budget 2026-27, stated, “We term it as a step towards the world 3 largest economy of Viksit Bharat Mission of our Prime Minister of India with a growth rate of around 7 percent for stability, sustained growth, fiscal balance and moderate inflation.”

However, he sought to draw the attention of the Prime Minister and the Union Finance Minister towards J&K to seek a special package for MSMEs.

“Jammu and Kashmir is still an industrial backward UT due to locational disadvantages resulting in limited employment opportunities for the local youth and it was the need of the hour for a special central package of incentives for providing hand holding support to existing and well as new units in MSME sector to create the employment avenues for the local youth with the establishment of public sector manufacturing units in the defence production, fertiliser plant, sugar mill etc., which will explore the possibility of rapid growth of MSME sector,” Lalit Mahajan pointed out.

He stated that the climate of hilly areas of Jammu and Kashmir was suitable for the creation of IT sector infrastructure by inviting the global as well as domestic IT sector companies to invest in Jammu and Kashmir to provide employment opportunities.

“We also request the Lieutenant Governor Manoj Sinha, Chief Minister Omar Abdullah for adequate budgetary provisions in the upcoming J&K budget on the basis of our request made in the pre-budget meeting for existing working MSME units, facing stiff competition from the units covered under NCSS-2021 package of incentive,” Mahajan said.