Jammu and Kashmir provides a plethora of business opportunities in sectors such as tourism, agriculture and horticulture, food processing, handicraft and handloom, as well as real-estate. With the removal of Article 370, the overall development of Jammu and Kashmir has received a much-needed boost. The Central Government announced several policies to encourage investments in various fields; industrial zones were identified in different districts, and consequently, many big companies came forward to invest in Kashmir. Since any Indian citizen could buy immovable property in J&K, investments in real-estate and other infrastructural projects received an impetus.
Efforts Taken to Encourage Investments in J&K
The J&K Global Investors Summit was a state government initiative aimed at expediating industrial growth and creating more employment opportunities in Jammu and Kashmir. In early 2021, the J&K Government spoke to delegates and investors in six foreign countries, about global investments in the UT.
At Indusfood 2021, which is the largest integrated trade show in South Asia, Ankita Kar, the Managing Director of Jammu and Kashmir Trade Promotion Organization (JKTPO) led the Jammu and Kashmir delegation. At the fair, the strengths of Jammu and Kashmir were showcased and traders and buyers from foreign countries were called upon to explore investment opportunities in J&K. Kar signed a Memorandum of Understanding (MoU) with Mohit Singla, Chairman, Trade Promotion Corporation of India (TPCI) for the agro and food processing sector as well as the film tourism sector. According to this, TPCI is expected to provide knowledge and research-based information as also marketing and developmental activities in these sectors. JKTPO officials are discussing investment opportunities with delegates of Bangladesh, Nepal, Russia, Turkey, Uzbekistan, and Belarus. As Singla rightly said, the agro and food processing sector is important for J&K, and that with the joint effort of JKTPO and TPCI, different investment avenues will be explored and traders across the globe would wish to invest in Jammu and Kashmir.
In December 2020, global investors were willing to invest over 3200 crore INR in the health care and medical education sectors in Jammu and Kashmir. J&K has 53 industrial estates and 32,226 small-scale industrial units with an investment of more than USD 793 million. There are over 60 investment opportunities in the transport sector, a majority of them being in the construction of roads and bridges. In the logistics department, there are over 50 investment opportunities and, in the education, medical and housing infrastructure, there are over 20 opportunities for investment. In the energy sector, primarily in electricity generation, there are around 20 investment opportunities.
In October 2021, the UAE government signed a MoU with India to build infrastructure in Jammu and Kashmir. This will include the construction of IT towers, multi-purpose towers, logistics centres, industrial parks, a medical college and a hospital.
The Central Government is working towards ensuring clean drinking water for every household in J&K, by August 15, 2022. The Centre has put an industrial policy into place, in which an investment of INR 50,000 crore will facilitate better education, employment, infrastructure, and business growth in Jammu and Kashmir. The government policy is aimed at accelerating industrial growth and service-led development, with a focus on employment creation, skill development, and sustainable growth. An additional INR 12,000 crore may be invested to establish industrial units in J&K. The successful implementation of this policy is expected to create employment for 78,000 people. The government aims at achieving an all-round, all-inclusive development of Jammu and Kashmir through investments from India and other countries.
Due to the revocation of Article 370, the restrictions on education and trade have been removed, which has resulted in an increase in investment opportunities in every business sector in Jammu and Kashmir.
Benefits of Global Investments in Kashmir
- Global investments are projected to create more job opportunities in the state and consequently, lead to its economic growth
- The export of handicrafts will increase, and local agro-based businesses will grow faster.
- Global investments in the tourism industry will result in better tourist facilities and infrastructure, thereby boosting tourism. Global investments in the travel sector will promote adventure tourism and religious tourism in Jammu and Kashmir. With better quality of tourist infrastructure, film tourism to J&K will also get a boost.
- If investors across the globe enter the health care sector in Jammu and Kashmir, world-class health care providers will start health centres in the state, thus improving the quality of health care.
- Investments in the field of education will lead to the opening of new and better schools, colleges and universities, resulting in a higher quality education, which will benefit the youth of J&K.
The scenario of global investments in Kashmir looks positive. These investments will improve the economy of Jammu and Kashmir and also give a better living to the natives.
