The Supreme Court of India, in a historic and unanimous decision on December 11, 2023, upheld the central government’s decision of August 5, 2019, i.e., removal of article 370 of the Indian Constitution.
Development is the next milestone for the government as well as for the people of Kashmir. Let’s first understand the social and economic region of Jammu and Kashmir.
Jammu and Kashmir has a geographical area of 42,241 sq. km comprising 1.285% of the total area of the Indian territory. Jammu and Kashmir has a population of roughly 1.25 crore people.
The report on Multidimensional Poverty Index (MPI) by NITI Aayog said only 1.51 percent of the population in Srinagar district is underprivileged. Experts say Kashmir is very rich in geographical location and resources. Himalayas and the rich fertile lands which grow some of the best quality produce in the world e.g.: saffron, apples, dry fruits etc. If we are talking about natural resources, then Kashmir is very rich.
There are five major sectors contributing to the region’s economy: – Agriculture and horticulture, Tourism, Handicrafts, Industries and Government jobs. About 65 to 70 per cent of Kashmir’s population is supported by agriculture and horticulture.
Agriculture and Horticulture
The occupation of people in Jammu Kashmir is majorly in Agriculture and related activities. The economic development of the state mostly depends on Horticulture. The major production includes here are apples, apricots, cherries, pears, plums, almonds and walnuts.
Apple cultivation Sector employs the highest number of people in Jammu and Kashmir. The apple industry (agro industry making juices, jam etc) is a significant source of employment in Jammu and Kashmir, generating the highest number of jobs. It provides approximately 400 man-days of work per year per hectare of orchards, supporting a workforce of 3.5 million people.
Tourism
The tourism industry in the state of Jammu and Kashmir generates around Rs. 8,000 crores annually, contributing to nearly 7% of the state’s GDP. It was badly affected past many years, is now coming back to its track. There has been 15-20% growth in footfall in 2023 as compared to last year.
Handicrafts / Cottage Industry
Jammu and Kashmir’s handicrafts are world famous and the traditional handicraft industry has emerged as a large industry. The region 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 cottage handicrafts industry provides direct and gainful employment to around 340,000 artisans.
Export
The major contribution to the region’s economy comes from exports, Export of handicrafts, apple and its products, herbs etc are the main source of income in Jammu and Kashmir, a substantial part of income comes from agriculture and allied activities, which are partially taxed. So, it doesn’t have a robust tax base and results in dependence on the Centre for funds.
Is Industrialization synonym with Growth?
In Jammu and Kashmir, the Industry sector, is in its early stages of development, the government is providing industrial land at low cost for 99 years lease, whereas in some parts of India, the lease period for industrial plots is for 30 years, shows the eagerness of the Government.
Why government is too ambitious for industrialization, especially large-scale industries in Jammu and Kashmir? The Directorate of Economics and statistics have made their survey report available before time for this purpose. They have a full fledge project report for the industrial growth of this region, with a budget, whereas Nabard, Sebi has their own limitations. Is this homework for the capitalistic setup?
Big industrial giants are also targeting this opportunity. By now, industrialists, so called capitalists have already made their plans with blueprints for Jammu and Kashmir.
Studies say large scale industries make people dependent on them by giving lucrative salaries and perks, people get trapped and discard their own (employees) trade. If one map the economic behaviour of these companies, it shows that after extracting the maximum potential of a region, may be within 5-10 years, when it reach the economic saturation point, it become restless. Holding that position becomes a costly affair for these industries, hence, they start removing a good number of employees from their establishment, as a result more and more unemployed youths are born. These giant industries also are a threat to the existing cottage industry, apple industry and many more small industries in Jammu and Kashmir, where a large number of youths are already working.
Is the orthodox system of development a key to achieve the goal/ prosperity? Are the financial growth means industrialization? Certainly not. The whole country is a big example of mismanagement of orthodox economic policies, which may be century old.
Right time for Socio-Economic Unit
There is always an excuse that, a running financial capitalistic set up cannot be disturbed in order to experiment new economic policies. Even the developed countries are also scared to take any risk. Financial advisers look upon it as “shifting of north pole or south pole”, though capitalism is in its terminally ill state.
Here in Jammu and Kashmir the Government has the brightest opportunity, but only for once, this chance is not available even to the developed countries. The Government must grow this area as a self-sufficient socio-economic unit, which will become a model for other states to follow.
Model of Socio-Economic Zone (Prout)
The first step is to rehabilitate people of Kashmir, who are familiar with the trade and have sentiments about the trees, the river, the crops, the people, in a nutshell everything in Kashmir. They are going to be the strongest financial army in Kashmir.
100% employment must be ensured to the local inhabitants before Government bring the workforce from outside. Exceptions can be there in some trade like doctors, teachers etc.
The financial strength of this sector, i.e., cottage industries, where many small independent economic units remained closed for years are required to be made “active unit”, invite their past owners to work on it. The government must help people to revive these inactive units by telling them about co-operatives.
The lucrative govt policies, abolishment of middle agents is another step to be undertaken for its export sector. Reformation of tax policy for this sector and other sectors is another step.
The government funds for this region should be used to develop infrastructure like roads, electricity, water, schools, colleges, hospitals but after consulting and understanding demands of local people.
Once the self-sufficient socio-economic units are developed in small scale, then only the government should allow the middle scale industries that too in the form of co-operatives.
Development does not mean installing of Large scale industries, development means a self-sufficient economic zone. It is the objective of Government and People of Kashmir to strengthen Jammu and Kashmir by establishing economic democracy for all.
Meetu Singh
Perfect article 👌 👏