Even after almost 75 years of independence, Jammu and Kashmir remains a volatile region. However, one should agree that, today, the situation is far better than what it was around five years ago. The abrogation of Article 370 is to be thanked here. The removal of the article has brought several changes across the otherwise frozen investment land of the state-turned-Union Territory of Jammu and Kashmir and Ladakh.
No sooner than the article was removed, it paved the way to the opening of several investment avenues, much as if the world awaited such a positive change to invest in this immensely promising investment realm.
The region’s potential investors include domestic as well as international investors across various business domains, from real-estate to retail. But what makes Kashmir a unique investment hotspot, especially for international investors? That’s something worth exploring also to determine the region’s investment promise. So, let’s look at five factors that make Kashmir a unique investment proposition for international investors.
5 Factors that Make J&K a Unique Investment Destination
Lately, Kashmir has been attracting international investors. One of the most significant instances is the six agreements that J&K signed with global investors at Dubai Expo 2020. The investments concerned real estate, healthcare, infrastructure, tourism and others. While the local authorities are working relentlessly towards transforming Kashmir into an investment haven, these factors that already exist add enormous value to Kashmir’s international investment potential.
1. Untapped Business Opportunities
There’s so much to do in Kashmir. The region has recently stepped out of dormancy and has so much to offer and to do for several years. From tourism to real estate and from industrial development to investments across the education and skill development sector, global investors have a massive amount of potential to explore and leverage. Besides, sectors such as food and beverage and retail also hold bright prospects considering the availability of human and natural resources across the valley.
2. Enormous Talent Base
Kashmir has had instances of youth indulging in stone-pelting on account of provocative speeches and the spread of anti-India agenda. Although the situation is gradually improving, the region requires sustainable employment generation on a much broader scale to drive people away from such activities. One of the examples is many Kashmiris building successful businesses and generating employment.
It isn’t that Kashmir does not have talented human resources. However, the potential has somewhat remained unexplored all along. The removal of Article 370 is seen as a potential game-changer. It allows global investors to enter Kashmir’s investment arena, provide employment to millions and tap the massive resource base.
3. Availability of Land
Kashmir is known for a challenging terrain, full of mountains, valleys, inaccessible areas separated by rifts, rivers, etc. Despite these challenges, the region still has a lot of unutilized land, which can be used to establish manufacturing setups, business parks, etc. based on local rules and regulations.
4. Growth Potential for Small Businesses
As stated earlier, lately, Kashmir has witnessed the inception and success of several small-scale businesses across various sectors. While these businesses continue to grow at their pace, the entry of global players and investors can strengthen the ecosystem. It can help small-time businesses gain access to a broader customer base, and build synergies that foster collaborative and sustainable growth and progress.
5. Extensive River Network
Kashmir has an extensive river network with major ones such as Chenab, Liddar, Jhelum, Kishanganga, Indus, Tawi, Zanskar and many others that cover the length and breadth of the region. Development of an inland water transport network (which is currently under development) can form an excellent opportunity for global investors, especially companies with consumer-based products to reach every corner of the valley.
Conclusion
No matter the potential, the cancellation of Kashmir’s special status alone does not solve the problems the region has been facing since India’s independence. The region has witnessed a sharp decline in terrorist activities in 2019. But to encourage investors worldwide to invest in the region wholeheartedly, there’s a need to uproot terrorism, establish peace in the region and thus provide investors a higher degree of security.
Additionally, to a significant extent, there’s a need to win local confidence and ensure the positive involvement of locals to enhance the investment potential of the region further.
With every effort made by the government, we hope to see the sun of a terror-free Kashmir rise and the region becoming one of India’s most significant global investment hubs, soon!
