Year Ender 2023: J&K witnesses ‘record-breaking industrial, investments developments’ this year

J&K integrated textile area is a textile manufacturing hub in Kathua, Jammu & Kashmir. (Photo via Wikimedia Commons)

The Jammu and Kashmir Union Territory continues to witness record-breaking industrial sector investments and developments.

The officials at the department of industries and commerce J&K claim that the UT has realised investments worth Rs 2,153.45 crore during financial year 2022-23, the highest compared to any financial year over the past decade.

Similarly, in seven months of the current 2023-24 fiscal year the J&K has realised investments worth Rs 2,080 crore, setting the stage for another year of remarkable industrial development and economic growth in J&K.

The record-breaking industrial investment worth Rs 3,905.45 was realised within a span of just 18 months, which is the highest ever. Notably, the investments also include Rs 500 crore of first Foreign Direct Investment (FDI) in J&K by EMAAR group, the makers of Burj Khalifa in Dubai.

In March this year, UAE’s Emaar Group known for making landmark buildings including the Burj Khalifa and Dubai Mall, made the formal entry into J&K with the foundation-laying ceremony of a mega-mall project in Srinagar’s Sempora.

According to the J & K government the project includes the building of a mega-mall — “Mall of Srinagar” likely to become operational by 2026 and a multipurpose tower. “Emaar will make a total investment of Rs 500 crore, the first significant FDI in J&K since the abrogation of Article 370, which granted special status to J&K,” reads the official statement of J&K government.

The government expects that the industrial development in J&K can boost employment during next five years in J&K. 46 new industrial estates with an area of 17,012 kanals are also being developed taking the total to 110 estates in J&K.

“After the introduction of J&K Industrial Policy, 2021 a sustained industrial development and economic growth was witnessed in the region. For example, within 22 months of implementation of the New Industrial Policy, J&K received investment proposals from more than 5,000 domestic and foreign companies,” says J&K Lieutenant Governor Manoj Sinha.

In March this year the minister of State for Home Affairs, Nityanand Rai in a written reply to a question in the Rajya Sabha says that a total of 5327 investment proposals were received since the announcement of New Industrial Policy 2021.

In September this year, LG Sinha said, a new startup policy will be drafted to boost the startup ecosystem in J&K.

The new policy, the J&K administration believes, will provide a roadmap for nurturing innovation, creating jobs, and driving economic growth in the region.

LG in November this year also invited India’s industry leaders to invest in the J&K region, asserting that the erstwhile state is offering investors endless possibilities and a partnership in a strong profitable growth.

A senior official currently posted at the department of industries and commerce Kashmir tells Moneycontrol that J&K has recorded more than 86 per cent rise in industrial sector investments in less than five years. “Compared to the total investment of Rs 296.64 crore in the fiscal year 2019-20 J&K has received Rs 1,752.1 crore only in the six months of current fiscal year, highlighting the industrial sector's overall upward trajectory and massive growth in industrial investment.”

The other fiscal years highlighted continuous growth, with investments of Rs 412.74 crore and Rs 376.76 crore in the industrial sector for 2020-2021 and 2021-22, respectively.

According to the compendium released by the department of industries and commerce J&K the investments have not only boosted the economy of the region but also led to the creation of thousands of jobs. “The direct employment generated stands at 11,091, while indirect employment, including subcontracting on the same project site, reached 5,582. The Pradhan Mantri Employment Generation Programme (PMEGP) played a significant role, employing 77,743 individuals,” the compendium reads.

After the first-ever G20 Tourism Working Group meeting in Srinagar in May this year the J&K’s handicraft industry thrived and the demand for handicraft and handloom products increased with products worth Rs 1,116 crore exported in 2023.

J&K’s handicraft and handloom items including Pashmina shawls, carpets, and exquisite papier-mâché items were put on display for G20 delegates. The exports doubled from Rs. 563 crore in 2021-22 to Rs. 1,116.37 crore in 2022-23.

Similarly, the G20 summit, a premier inter-governmental forum, comprising both developed and developing countries gave an impetus to the tourism industry of the region, which contributes around 7 per cent to the gross state domestic product (GSDP). For example, the union government claims that for the first time after independence, more than 20 million tourists have visited J&K this year.

The horticulture industry being the largest employment generator in J&K, employing 3.5 million people, and contributing 9.5 per cent to its GSDP also thrived this year, courtesy best rates of apples in the fruit market.

According to apple growers, for the first time since 2007-08, apples were sold at the best prices in Kashmir. For the first time ever, a 15kg box containing the Kullu delicious variety was sold at Rs 1,300-1,600 compared to Rs 700-800 in 2022. Similarly, the 15 kg plain delicious variety was sold at Rs 1,000-1,300 compared to Rs 400-600 in 2022.

For the first time in the 102 years of its manufacturing history in the Valley, the cricket bats manufactured in Kashmir featured in 50-over World Cup matches in India this year. At the International Cricket Council (ICC) Men’s Cricket World Cup 2023, which started on October 5, the Afghanistan players played with legendary Kashmir willow and achieved great success.

Afghanistan did not reach semifinals but managed to defeat quality teams like England, Sri Lanka and Pakistan.

The bats made in Kashmir had received tremendous international recognition after a 109-metre six was hit by UAE's Junaid Siddiqui in ICC T20 World Cup 2022.

Contrary to the government claims, president of Federation Chamber of Industries Kashmir (FCIK), apex body of industries in Kashmir, Mir Shahid Kamli tells Moneycontrol that there is no visible growth of industries on ground in Kashmir because the newly crafted industrial estates are yet to get developed by way of infrastructure.

“The investments which the government claims are simply paper investments because there is a lack of substantial growth of overall industries in Kashmir. Everyone in the Valley wants industries to flourish and develop but on ground we should feel the actual developments and investments,” says Kamli.

He adds that when the condition of existing industries will change and improve, the entrepreneurs will automatically look to invest in Kashmir, boosting employment.