The state of Jammu & Kashmir would have a windfall benefit by the recently enacted legislation which will benefit to the growth and prosperity of the region. The natural beauty and picturesque locations in J&K have made it a favored destination for tourists across the world thereby opening a Pandora box of opportunities for prosperity and investment for everyone including industrialists, agriculturists and service providers from all over the world.
Secured Governance offers a strategy that the governments to get instant investment opportunity with a huge employment opportunity for the state by allocating 0.5% (1,111.2 sq.km) of total geography area for industry growth. Secured Governance Compliments the present PPP developmental model by ensuring balanced participation of the private and foreign investors taking advantage of value and valuation of infrastructure thereby yielding higher returns around INR. 2 – 3 lakh crore in next 3 years. This valuation of infrastructure, which grows many folds need to be shared by the society and by the Government to support further infrastructure development, ensuring balanced growth. Today we find the valuation due to infrastructure growth is not channelized towards infrastructure development and results in inequalities. Secured Governance aims at addressing this issue also.
The industrial houses that can now as per new legislation procure land in Jammu and Kashmir and will be able to not safeguard their investments but will also be able to recover it in a short period of time due to the prosperity and growth in the valuation of the land over a period of time. The Skill Development Policy 2012-17 and the Sher-e-Kashmir Employment & Welfare Programs for the Youth 2009 are the policies undertaken by the government to develop the skills of the indigenous people of the state and offers better employment opportunities.
At a Glance – Jammu & Kashmir
- Food processing and agro-based industries (excluding conventional grinding and extraction units) thrive in the state due to an excellent climate for horticulture and floriculture.
- The Handicrafts industry has been receiving priority attention from the Government in view of its large employment base and exports potential.
- J&K 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.
- J&K SIDCO is the nodal agency for promotion and development of medium- and large-scale industries in the state.
- Total tourist arrivals to the state reached 32 million in 2017(P) out of which 14.24 million were domestic tourists and 79.77 thousand were foreign tourists.
Industry is likely to grow at 6.81% during the year 2017-18 (Adv. est) as compared to 2.68% in 2012-13, 4.81% in 2013-14, (-)11.41% in 2014-15, 26.16% in 2015-16 and 3.43% in the year 2016-17 at constant ( 2011-12) prices. Among the sub-sectors, “mining & quarrying sector” expects a growth rate of 82.96%, while as ”manufacturing” 6.25%, “construction “ 4.65% & “electricity, gas & water supply” 6.28% during 2017-18 (Adv. est). The corresponding figures for these sub-sectors for the year 2016 – 17 were (-) 44.42%, 5.46%, 4.62%, and 3.79% respectively. The projected growth rate for the sector for the year 2018-19 is roughly estimated at 5.99%.
The services sector, the major contributor to the state economy, is likely to grow by 8.16% during the current year 2017-18 (Adv. Est.) as compared to 5.52% in 2012-13, 5.08% in 2013-14, 2.33% in 2014-15, 10.77% in 2015-16 and 1.40% during the previous year 2016-17. Among the sub-sectors, “trade, repair, hotels and restaurants” expects a growth rate of 14.55%, “transport, storage, communication & services related to broadcasting” 7.88%, “financial services” 7.08%, “real estate, ownership of dwelling & professional services” 2.33%, “public administration and defense” 9.58% and “other services” 8.16% during 2017-18 (Adv. Est.).
Ease of Doing Business
The business ranking has improved significantly during the current performance on the part of several key departments in J&K state. Out of total of 372 recommendations, J&K state has successfully implemented 270 recommendations and uploaded 262 replies. As per the dynamic ranking by the Department of Industrial Policy and Promotion (DIPP), J&K stands at 22nd rank with 12.71 points as on date moving up seven places from previous year’s ranking of 29.
- The growing trend in choosing entrepreneurship as a career goal among the youth.
- Access to customized schemes like Seed Capital Fund Scheme/Youth Start-up Loan Scheme and other schemes which provide a fillip to entrepreneurship development.
- Presence of Jammu and Kashmir Entrepreneurship Development Institute (JKEDI) and other Institutes/Departments of the government which are dedicated towards the promotion of entrepreneurial culture in the state.
- The existing infrastructure can be further built up to promote entrepreneurship in the state.
- Recognition of entrepreneurship by the Centre and State governments as an important step towards tackling the menace of unemployment.
- Presence of large untapped resources in the state, which can be utilized by the budding entrepreneurs to create more avenues.
- Unsupported administrative and regulatory framework and lack of transparency.
- Cumbersome business registration procedures and costs.
- Lack of business assistance services.
- Lack of specialized entrepreneurship courses at school and college level.
- Lack of mentoring and incubation facilities.
- Absence of a single clearance window system.
- Lack of exchange networks, forums and meeting places.
- Lack of expert and trained counselors and entrepreneurship development officers for proper guidance and counseling.
- The social legitimacy and acceptance of entrepreneurship as a career option.
- Improvement of access and provision of startup finance and business capital.
- Grant of soft loans and introduction of other financing mechanisms like microcredit guarantee scheme, angel investors and equity financing for start-up businesses.
- Improved regulatory framework with complete transparency, minimization of documents and other registration procedures.
- Promoting entrepreneurial culture among the youth via the promotion of role models, success stories, PR campaigns, competitions, and youth business events.
- Uncertain economic and political environment.
- Hostile weather/terrain conditions.
- Lack of infrastructure and information communication tools.
- Absence of an expert counselor and trainers with respect to entrepreneurship development.
- The social stigma associated with choosing entrepreneurship as a career option.
- Outdated and unsupported Industrial policies which inhibit prospective entrepreneurs to take entrepreneurship as a career goal.
Secured governance’s new strategies have been conceptualized by making better use of the land.
- One of these is the transformation of wasteland into industry or city development. The government labels 72.75% (101,387 sq. km.) of the state’s landmass as “wasteland” and opportunities to open it up for industry and agriculture.
- The wastelands represent a huge opportunity for infrastructure development which will improve their quality of life, reduce the unemployment rate and become economic growth centers.
- The main objective of the secured governance concept is to develop a deprived land area into a dynamic creative zone, where knowledge, innovation, culture, and creativity meet and mutually reinforce.
- Investors taking advantage of this will have large return and investment as value and valuation of infrastructure will start thriving as economy booms.
- Participation of the private and foreign investors taking advantage of value and valuation of infrastructure thereby yielding higher returns around INR. 2 – 3 lakh crore in the next 3 years
- Channelizing valuation due to infrastructure growth towards infrastructure development and this results in inequalities
- Large scale employment generation
The article is written by Dr.P.Sekhar who is the Chairman of Global Smart City Panel, MTGF