Rakesh Magotra

There is a quiet but resolute transformation unfolding in the valleys and towns of Jammu & Kashmir. It isn’t driven by industrial corridors or headline-grabbing unicorns, but by shawl/carpet weavers in Bandipora and Budgam, saffron processors in Pampore, apple logistics operators in Pulwama and Baramulla, women-led food processing across the UT, small hospitality entrepreneurs in Katra modernizing their services for the ever-growing stream of pilgrims and a multitude of women led collectives providing support services. These are the unsung soldiers of J&K’s economic story-the micro, small and medium enterprises (MSMEs)-and on this International MSME Day, it’s time their journey is recognized as central to the region’s future.

International MSME Day

According to the Udyam portal, over 5 lacs MSMEs are registered in Jammu & Kashmir. This is a striking figure considering the geographical challenges and the lingering economic scars of the past. What’s even more remarkable is that the majority of these enterprises are micro, informal and often self-financed. Yet, they serve as the backbone of J&K’s non-agricultural economy-providing self-employment, household-level income diversification and opportunities for first-generation entrepreneurs, particularly women and youth.
The road, however, has not been easy. For decades, access to credit and institutional handholding was limited-not by intent, but by circumstance. Villages remained cut off during winter months, financial literacy was low and the absence of stable digital infrastructure made even routine banking a challenge. It is against this backdrop that J&K Bank-the region’s lead bank-has stepped up not merely as a service provider, but as a catalyst of inclusive financial transformation.
An important enabler in this journey has been the nudge by the Government for deepening of financial inclusion by J&K Bank by opening of branches, deploying of BCs, launch of Easy Banking Units (EBUs) to provide technology-enabled banking services by its channels strategically deployed in underbanked pockets of the UT. In the rural belts of JKUT alone, hundreds of such units provide last-mile access to financial services-from account opening to business loans-ensuring that no aspiring entrepreneur has to travel far for formal credit. The bank’s model though cost intensive but has rapidly improved coverage, reduced the role of informal lending and most importantly, built trust in institutional banking.
Sectors that were once informal and fragmented-saffron, handicrafts, walnut processing, bat manufacturing, agri-logistics, milk processing, food processing-are now coming into the mainstream. Over the past year, thousands of artisans and food entrepreneurs in Anantnag, Baramulla, Kupwara and Samba have received Udyam registration, opened business current accounts and even transitioned to QR-enabled sales. Women-led SHGs are increasingly availing working capital through the NRLM credit linkage framework. Youth are building start-ups in ecommerce, horticulture pre and post harvest services,technology enabled agriculture, farm-to-market apps and digital marketing for GI-tagged local products.
Religious tourism has become a major enabler for service-sector MSMEs. Towns like Katra, Pahalgam, Sonamarg,Charar-e-Sharief Ganderbal etc. have emerged as micro-clusters of enterprise-pilgrim transport providers, food kiosks, homestays, luggage-handling services and more. Every yatra season revives a full economic ecosystem, powered largely by microcredit and informal hiring. These are real jobs, real services and real local economies-not yet headline material, but deeply relevant to livelihoods and rural stability.
The Central Government’s policy direction has helped. From Udyam Registration to PMEGP, PMFME and PM Vishwakarma, the policy ecosystem is finally catching up to the unique needs of northern MSMEs. What’s needed now is precision: better Udyam-GST-Aadhaar data sync, simplified onboarding, cluster mentoring and a digital bridge that works even where 4G doesn’t.
Yet for all the progress, gaps persist. Several districts-particularly in areas like Gurez, Kishtwar,Ramban, Poonch and parts of Rajouri-continue to face poor credit penetration. Bankers remain cautious when dealing with first-time borrowers without conventional collateral or formal repayment histories. Inter-departmental convergence on MSME policy remains limited, and many entrepreneurs still struggle with documentation, digital onboarding or post-loan support.
It is precisely in this context that Mission YUVA (Yuva Udyami Vikas Abhiyan)-a flagship initiative of the UT Government of Jammu & Kashmir-emerges not just as a policy, but as a breakthrough response. Conceptualized and steered under the leadership of the Chief Secretary, the initiative is a bold attempt to institutionalize entrepreneurship as a mainstream economic driver across all districts of the UT.
Mission YUVA is structured around a robust 4C Model: Culture, Capital, Capability, and Connectivity.
* Culture – It aims to nurture a new, enabling culture for entrepreneurship by embedding support systems at both district and block levels-providing handholding, grievance redressal and mentorship to new business owners.
* Capital – Financial inclusion is core to the mission. With the involvement of banks like J&K Bank and other institutional lenders, the scheme promises targeted credit through term loans, working capital and startup support-backed by government guarantees and margin support.
* Capability – Mission YUVA envisions large-scale rollouts of Entrepreneurship Development Programs (EDPs) and sector-specific skilling initiatives, covering agri-business, crafts, tourism services, tech-enabled trades and retail innovations.
* Connectivity – Perhaps its most forward-looking pillar, this focuses on enabling market access-from e-commerce onboarding and digital marketing to trade expos and B2B linkages-thereby making J&K’s MSMEs globally competitive.
Importantly, Mission YUVA is not siloed. It draws strength from its convergence model, bringing together the Labour and Employment Department, Educational institutions, Industries & Commerce, banks, training partners and development agencies like NABARD & SIDBI under one operational umbrella. The upcoming formal launch will be marked by the sanction of loans to the first batch of identified entrepreneurs-each one representing a family, a livelihood and a dream.
But like every transformative initiative, its success will lie in its execution. First, the field-level readiness of the system-bankers, trainers, officials-must match the vision. Second, monitoring tools and dashboards must be real-time, ensuring fund flow transparency and beneficiary tracking. And third, the ecosystem must actively promote borrower-bank trust, especially among those who’ve never borrowed before.
On this International MSME Day, while the rest of the country discusses formalization and fintech, J&K is quietly proving that the future of inclusive growth lies not in funding giants, but in believing in small beginnings or what the YUVA team is branding as nano entrepreneurs. From a food cart in Poonch, a milk processing SHG in Bhalwal, mobile repairing units in urban centres, apple chain logistics unit in Pulwama to a GI-label shawl exporter in Srinagar, the energy is visible and vibrant.
Mission YUVA doesn’t just aim to tap this energy-it aims to channel it, scale it and celebrate it. Because when entrepreneurship becomes a movement-not just an option-it reshapes everything: from economic growth and employment, to identity and aspiration.
(Author is a DGM in JK Bank)

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