Industrial Development & Economic Growth in Jammu & Kashmir

Jammu and Kashmir (J&K) is the northernmost state of India and a global tourist destination. In addition to traditional recreational tourism, a vast scope exists for adventure, pilgrimage, spiritual, and health tourism.

The economy is primarily services based and agri-oriented. The state’s GSDP grew at a CAGR of 10.30 per cent, during 2011-12 to 2017-18. The GSDP is expected to grow at 11.71 per cent (in Rs) by 2018- 19 to reach Rs 1.57 trillion (US$ 24.42 billion). The state’s NSDP increased at a CAGR (in Rs) of 10.02 per cent from 2011-12 to 2017-18. The state’s NSDP is expected to reach Rs 1.34 trillion (US$ 20.73 billion) in 2018-19.

A vast natural resource base has enabled J&K to develop land for cultivating major fruits. With varied agro-climatic conditions, the scope for horticulture is significantly high in the state. Food processing and agro-based industries (excluding conventional grinding and extraction units) thrive in the state. J&K has an ideal climate for floriculture and an enormous assortment of flora and fauna. The state has Asia’s largest tulip garden.

J&K’s handicrafts are world famous and the traditional handicraft industry has emerged as a large industry. Due to its large employment base and exports potential, the industry has been receiving priority attention of the government. The state is also 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:

• J&K’s handicrafts are world famous, on the back of which, handicraft industry of the state witnessed huge growth. Handicraft exports from Kashmir for 2017-18* is Rs. 514.20 crore (US$ 79.78 million)
• J&K has an industrial policy that offers attractive incentives along with a single-window clearance mechanism. Land is allotted at concessional rates in industrial areas on lease for 90 years.
• National Highway Infrastructure Development Corporation (NHIDCL) is developing five tunnels in the state at a cost of US$ 3.42 million. The tunnels will have all weather access, and will be completed by 2024.
• According to the DIPP, cumulative FDI inflows, during April 2000 to March 2018, were valued at US$ 6 million.
• The Kashmir region is known for its horticulture industry. The industry plays a vital role in the state’s economic development. In 2017-18^, total production of fruits in the state stood at around 2.24 million metric tonnes.
• The state is a leading producer of apples and walnuts; the total apple production, in 2017- 18P, stood at around 1.74 million metric tonnes.
• 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.
• About 150,000 metres of silk cloth is produced per annum in J&K. During 2017-18(P), 132 MT of raw silk was produced in the state.

Note: * - Till September 2017, P – Provisional, ^ - As per 1 st Advance Estimates

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