Kailash Pati Sharma
Since 1989, terrorist activity and violence has shattered peace and disrupted economic stability in Jammu and Kashmir. The constant threat to economic resources from rising militancy has led to its over-dependence on central Government funding. Economic growth of the state measured in terms of per capita gross domestic product (GDP) has drastically started dipping and industry has taken a huge setback and most of the big companies have taken a natural death in the State.
With this slow growth in the industry, in addition to huge wastelands, barren, rocky land,forest in Ladakh and also the surrounding areas of snow-covered land tend to make the state extremely poor.
They cover an area of 46,379.45 sq. km which constitutes the major reason of the poverty and low economy as per the Tendulkar Committee’s poverty estimates. Poverty reduction in the seven-year period since 2004-05 has been merely three percentage points, from 13% in 2004-05 to 10% in 2011-12, in comparison to an average decline of 15 percentage points at the national level. The frequent terror attacks and unrest at the border areas is creating lot of doubt and un restamong Industry to invest in this state for industry. Our Political parties have always shown a hollow approach towards Industry. Earlier NC-Congress and now PDP-BJP are just doing band aid approach for Industry upliftment. There is no end to end constructive approach and mindset to evolve and revive the Industry in J&K. Just by giving incentives in Papers and Policy cannot bring the investment in State. Today more than 80 percent industry is due to subsidy and many of the folks just take the subsidy, but don’t want to work on competitive and innovative approach. We have seen in last few years that programs like vibrant, Gujarat, invest in Madhya Pradesh, Come to Karnataka have been launched to attract investment. A new state like Telangana can attract investment of more than two lakh crore and in J&K we are struggling just for a few big companies. Another big question is on competence and vision of the Industry Ministers in the past and current. Corruption and slow attitude in the Industry is another big issue for investors here. You go to the Industry Office in Vikram Chowk and you will see the files are just under dust and officers take 2-4 hours to see your file and that too in very bad-dustyconditions. I have seen that in last few years, three industry Ministers, three MDs of Industry changing but not a degree difference in the state’s Industry’s enhancement.
The state also ranks poorly in attracting domestic investment. As illustrated by the World Bank in its report on Assessment of State Implementation of Business Reforms 2015, J&K was among the worst performers with a rank of 29 out of 32 states and Union territories. “Low FDI in J&K may not be a complete surprise with domestic investment also being weak in view of its troubled history. In any state, investors will be interested to invest only when there is growth potential administration and law and order are in place. Lower investments have been reflected in a slowdown in the growth rate of the state. As per the latest available state wise growth data maintained by the NITI Aayog, gross state domestic product of J&K at constant prices (2004-05 series) is projected to have fallen sharply to (-)1.57 per cent in 2014-15 from 5.63 per cent in 2013-14. The three biggest employment generators in the region – handicraft, horticulture and tourism – are facing their own challenges. Electronics and IT industry is very miniscule and there are no efforts to make it vibrant. Electronic business was caught in the Jammu-Kashmir politics and many of the corporate sectors closed their units in J and K,
This industry is really worried about the fact that Government finances in J&K are a ticking time bomb, especially with respect to deferring of liabilities. We are totally dependent on the central grant and J&K has received the highest grants from the Centre in the last decade. As per the Ministry of Finance data, J&K has received Rs 1.06 lakh crore in grants from Centre from April 2006 to March 2016, followed by Himachal Pradesh and Assam, which received Rs 53,670 crore and Rs 46,446 crore in grants, respectively. According to data from the J&K budget in 2015-16, the Government’s total expenditure was Rs 51,670 crore, out of total revenue receipts of Rs 51,460 crore in 2016-17. On the employment front, the number of males employed per establishment decreased by 2.79 per cent to 1.74 in J&K. The employment number for females per establishment was more encouraging with a rise of 6.57 per cent, with a rise of 7.12 per cent seen in rural areas and 5.94 per cent in urban areas.
My opinion about the Industry Evolution:
* First let’s plan and invite the global and local investors meet and call PM, Finance Minister to bring seriousness and commitment in industry. Madhya Pradesh just did it and got commitment of 500 percent more than in last 20 yaers
* Create an Industry Evolution Cell with Govt, Industry experts and bring some 5-6 big industry house owners as directors or mentors. Consult state professionals who are in big positions in the corpoarte houses. Kill the corruption and digitize the file systems in industry. Kill the no work attitude and only work with “”Extra Money” attitude. In the GST get the special provision for J&K and bring tax at 10% and see the industry rise for 10 years. Digitize the whole industry process with paper less industry vision.
* Create Electronics and Electronics componennts clusters and this is huge opportunity for mobile components, Consumer componets, Assembly units clusters. Form the clusters networking and digitization labs, create testing and inspection lab hubs. We should create sites and clusters on Tech support, Medical, telecom with good quality theme. Create solar farms of 600 MW and bring public parivate pernetrship etc.
* Digitize and bring Innovation in Horticulture, Handicrafts and Tourisms. Mix man and machine for handicrafts productivity and quality. Innovate horticulture. Example: We can bring French walnuts which give 500 percent more productivity and make 4 clusters of walnuts in Jammu and Kashmir regions.
Promote Vaishno Devi, Amarnath, Kashmir, local Jammu spots. Create worlds, tallest Shiva statue for tourism, Shiva world gallery etc.
In the end we can revive industry in Jammu and Kashmir if we have will power to do that.
(The author is President Manav Utaan Mission and VP MNC, Members skill mission)
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