Food processing and agro-based industries (excluding conventional grinding and extraction units) thrive in the state because of an excellent climate for horticulture and floriculture. Handicrafts, the traditional industry of the state, has been receiving priority attention of the government in view of its large employment base and exports potential.
The state is famous for its small-scale and cottage industries such as carpet weaving, silks, shawls, basketry, pottery, copper and silverware, papier-mâché and walnut wood.
The following are some of the major initiatives taken by the government to promote Jammu & Kashmir as an investment destination:
- In order to boost infrastructure, Jammu and Kashmir has approved funding of about US$ 1.8 billion. Additionally, US$ 120 million is earmarked under Pradhan Mantri Gram Sadak Yojana.
- The Department of Industrial Policy & Promotion (DIPP) has extended a Special Incentive Package. This includes 100 per cent premium reimbursement under Central Comprehensive Insurance Subsidy Scheme to all units on expansion over the next five years.
- The state government has decided to construct a chain of compressed air stores in each district of the state in order to introduce modern pre- and post-harvest technologies.
- The government plans to provide cold storage facilities to growers across districts in the state for helping in preservation of fruits.
- The state has established the Jammu & Kashmir Handicrafts Sales & Export Promotion Corporation and Jammu and Kashmir State Handloom Development Corporation to promote development and growth of the handicraft sector.