After a gap of 10 years, Jammu and Kashmir has elected its new government, and as the UT government prepares to present its first budget, business and trade stakeholders across the Kashmir Valley are hopeful that the upcoming budget will address the region’s pressing economic challenges. The business community is particularly optimistic that the budget will provide a much-needed boost to the tourism and trade sectors, which have been struggling in recent years.
Kashmir’s business community is eager to see a budget that will revive trade and commerce, both of which have faced a significant slump for several years.
In an exclusive interview with Rising Kashmir, Javed Ahmad Tenga, President of the Kashmir Chamber of Commerce and Industries (KCCI), shared that business federations are hopeful for a revival across all sectors, which would, in turn, revitalize the valley’s economy.
“There is particular hope for a package that will support Kashmir’s tourism and handicraft sectors,” Tenga said. He also highlighted several challenges faced by the industrial and commercial sectors, including difficulties in attracting investment and gaps in infrastructure.
“Despite policy changes post-2019, attracting substantial industrial investment remains a challenge. Industrial areas still lack essential infrastructure like reliable power supply and transportation facilities. Moreover, complex regulatory frameworks deter potential investors and slow down industrial growth,” he explained.
Tenga further emphasised the need for regulatory reforms: “The government must streamline regulations to create a business-friendly environment that encourages entrepreneurship. Additionally, developing industrial parks with state-of-the-art facilities will support both manufacturing and services industries.”
The Kashmir Traders Association also raised concerns about the trade sector, particularly the inadequate logistics and transportation networks. They pointed out that limited access to external markets restricts trade opportunities and that complex trade regulations hinder the smooth flow of goods and services.
“We hope the government will prioritize the development of efficient transportation and logistics infrastructure to facilitate trade,” said a spokesperson from the association. “Trade corridors and agreements to open new markets for local products, along with regulatory reforms to simplify trade regulations, should be top priorities.”
Muhammad Yaseen Khan of the Kashmir Economic Alliance expressed strong optimism about the upcoming budget session. He emphasized that the business community is looking for a people- and valley-friendly budget that can turn things around.
“There’s no doubt that the valley’s business sector has faced a major slump in recent years. However, we hope that the government will consider giving a strong push to the trade and business sectors. Our markets are beginning to recover, and we believe the upcoming budget could mark a turning point for Kashmir’s business community,” Khan said.
The business community is also hopeful that the government will prioritize making Kashmir one of the world’s most sought-after tourist destinations, with the aim of significantly increasing tourist footfall in the region.
