Industry and commerce are the pivot on which State’s economy rotates. Development of industry in any State is commensurate with a variety of conditions and situations. Some of the Indian States have more developed industries than other States, and some have fairly advanced industries. As far as our State is concerned, first, we have to take into consideration the geography of the State as a whole. Three regions comprising the State are diverse in more than one way, which has a bearing on industrial growth. Much of Jammu region is plain like the valley but a larger part in both the regions is hilly with minimized connectivity. Ladakh region is at a higher altitude, dry and almost non-productive. Besides that, there is no railway connectivity with that region. It means that Ladakh’s industrialization chances are limited and at the best, only such industries can flourish as are supported by the climate and environment of that region.
J&K has not grown industrially the way we expected. Reasons are obvious as has been hinted at. However, there is some semblance of industrialization in the belt between Kathua and Jammu, which is plain and non-hilly. Barhi Brahmana-Vijaypur-Samba-Kathua sector has grown in industrial output to some extent and it promises more capacity. A couple of industries established in public sector in Srinagar area have not shown great promise. However, the private sector industries in Kashmir, mostly veering round handicrafts, shawl and carpet production, horticulture, dry fruit and saffron cultivation have been playing significant role. All this notwithstanding, the Government has to have a definite industrial policy to give direction to commercial activity. Industrial policy is a vast subject, of course of much importance to the industrialists and commercial magnates. It deals with almost all aspects of production of finished goods from supply of raw material to the induction of labour both skilled and unskilled and production of finished goods, followed by proper marketing. This all is now a standardized process that encompasses the rules and regulations pertaining to industry, the taxation formula, the marketing process and so many other things. The State Department of Industries and Commerce is supposed to take care of all these matters. Therefore laying down a definite and determined industrial policy is the business of this department. In 2004, the State Government laid down the outline of its industrial policy with a life span of ten years. In normal course of things, the revised industrial policy should have replaced the earlier one automatically in 2014. A key-announcement of 2015-16 budget regarding formation of new Industrial Policy for the State did not fructify as the Industries Department asked for extension of timeline. Not one but four extensions have been give by the cabinet, one after another, with the most recent one allowing the Department to submit the Policy by March 31, 2016.
Inefficiency and lethargy have combined to bedevil formulation of any definite industrial policy. While granting the fourth extension to the Department, the Chief Minister expressed his unhappiness over the way the department is functioning. It has been making lame excuses that are not tenable at all. The members of the Chamber of Commerce in Srinagar and in Jammu, too, have expressed their unhappiness over dilly-dallying tactics of the Industries Department. The point is that there are groves within groves. A wrong message goes around that vested interest would not let the government formulate a comprehensive industrial policy. There is another embarrassment for the government. The Finance Minister intends to present the budget for the year 2016-17 in January next year, instead of March, which is the normal practice. He has made a commitment during the presentation of the previous budget that the Industrial Policy would be incorporated in the new budget, to be presented in January. However, the Industries and Commerce Department has been given time until 31 March for submitting new Industrial Policy. How the government is going to resolve this contradiction is not clear. In any case, the point is that if a Department is not able to deliver on such an important issue as industries and commerce, there is certainly some serious flaw in its functioning. We seldom hear the government giving extension over extension to keep the festering sore alive instead of reprimanding the concerned severely and even threatening them with punitive action.
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