Indian Chamber of Commerce Proposes Comprehensive Set of Budget Proposals in Jammu
In a recent stakeholders’ interaction on Budget 2026–27 in Jammu, the Indian Chamber of Commerce (ICC), Jammu Chapter, under the leadership of Chairman Rahul Sahai, presented a detailed array of suggestions to Chief Minister Omar Abdullah. This initiative was lauded as a positive step towards participatory governance and informed policymaking in Jammu and Kashmir by the chamber.
The ICC highlighted the significance of structured engagement between the government and stakeholders in steering the Union Territory towards a revenue surplus status while fostering inclusive and sustainable economic growth. Among the key recommendations put forth by the chamber was the necessity for a pragmatic and fiscally balanced New Industrial Policy focused on bolstering existing industries, facilitating expansion, and attracting new investments.
For existing industrial units, the ICC proposed turnover-linked incentives of three percent for micro enterprises and two percent for small and medium enterprises, with an annual cap. Additionally, they advocated for a five percent working capital subsidy to counter the conclusion of NCSS benefits in 2026, the continuation of SGST reimbursement under SRO-31 until 2031 and beyond, a six percent interest subsidy on term loans for modernization and solar installations, and a capital subsidy to promote the adoption of renewable energy.
In the case of units undergoing significant expansion, the ICC recommended extending turnover and working capital incentives to the expanded capacity, continuing SGST refunds for both existing and new activities, a six percent interest subsidy on expansion-linked term loans with enhanced caps, and a simplified capital subsidy of up to 35 percent on machinery and solar plants, with clearer eligibility criteria and higher ceilings.
For new industrial units, the chamber suggested a comprehensive incentive package encompassing turnover-linked incentives, working capital subsidies, long-term SGST refunds tied to plant and machinery, a capital subsidy of up to 35 percent, and interest subsidies on term loans to enhance project viability and alleviate early-stage financial pressures.
Overall, the proposals put forth by the ICC aim to foster a conducive environment for industrial growth and development in Jammu and Kashmir, promoting economic sustainability and prosperity in the region.
