ICC Jammu submits Budget proposals to CM, pushes industry-led growth

Jammu, Jan 27: The Indian Chamber of Commerce (ICC), Jammu Chapter, led by its Chairman Rahul Sahai, submitted a comprehensive set of proposals to Chief Minister Omar Abdullah during the stakeholders’ interaction on Budget 2026–27 held in Jammu. The chamber welcomed the revival of pre-Budget consultations, terming it a positive step towards participatory governance and informed policymaking in Jammu and Kashmir.

ICC in a statement said such structured engagement between the government and stakeholders would help the Union Territory move towards revenue surplus status while ensuring inclusive and sustainable economic growth. The chamber emphasised the need for a pragmatic and fiscally balanced New Industrial Policy aimed at strengthening existing industries, enabling expansion and attracting fresh investments.

For existing industrial units, ICC proposed turnover-linked incentives of three per cent for micro enterprises and two per cent for small and medium enterprises, subject to an annual cap. It also sought a five per cent working capital subsidy to offset the expiry of NCSS benefits in 2026, continuation of SGST reimbursement under SRO-31 till 2031 and beyond, a six per cent interest subsidy on term loans for modernisation and solar installations, and capital subsidy to encourage adoption of renewable energy.

For units undertaking substantial expansion, ICC recommended extending turnover and working capital incentives to expanded capacity, continuation of SGST refunds for both existing and new activities, a six per cent interest subsidy on expansion-linked term loans with higher caps, and a simplified capital subsidy of up to 35 per cent on machinery and solar plants with higher ceilings and clearer eligibility norms.

For new industrial units, the chamber suggested a comprehensive incentive package including turnover-linked incentives, working capital subsidy, long-term SGST refunds linked to plant and machinery, capital subsidy up to 35 per cent, and interest subsidy on term loans to improve project viability and ease early-stage financial stress.