Over the past few years, the private sector in Kashmir has undergone a remarkable transformation, evolving into a crucial driver of economic growth, employment generation, and innovation.
Traditionally, the region’s economy was heavily dependent on agriculture, tourism, and government employment, but with recent changes in policy, infrastructure development, and an evolving entrepreneurial spirit, the private sector has emerged as a key player in reshaping Kashmir’s economic landscape.
A major factor that has facilitated the growth of the private sector in Kashmir is the series of policy reforms initiated by the government post-2019.
The abrogation of Article 370, which granted special status to Jammu and Kashmir, opened up the region for greater integration with the rest of the country. This move allowed Indian and foreign investors to explore opportunities in the Valley, an area previously restricted. Key sectors such as real estate, manufacturing, and services have attracted attention from businesses seeking to tap into Kashmir’s potential.
To foster this growth, the Jammu and Kashmir government has launched various initiatives to ease the process of doing business in the region. The development of industrial estates, tax holidays, subsidies, and improved access to credit have created an environment conducive to private investment.
The Jammu & Kashmir Industrial Policy 2021-30 is another significant step aimed at promoting industrial development and entrepreneurship in the region, targeting sectors like food processing, handicrafts, and IT services.
One of the primary challenges that had stunted the growth of the private sector in Kashmir was poor infrastructure and connectivity. However, the recent surge in infrastructure development, especially in road, rail, and telecom sectors, has bridged this gap significantly. The ongoing construction of tunnels, highways, and the railway link between Srinagar and Ramban will not only connect Kashmir more effectively with the rest of India but also reduce logistical costs for businesses.
Improved infrastructure has led to better access to raw materials, markets, and technology, allowing businesses in Kashmir to scale up operations and compete nationally. Additionally, the region is also witnessing advancements in digital connectivity, with the government actively working to saturate 4G coverage across Jammu and Kashmir, further boosting the private sector’s potential.
Another promising aspect of the private sector’s emergence in Kashmir is the rise of local entrepreneurship. Over the past few years, a growing number of young Kashmiris have begun establishing startups, especially in sectors like e-commerce, hospitality, and information technology. The startup culture, which had been relatively nascent in the region, is now gaining momentum as local entrepreneurs take advantage of improved access to capital, mentorship programs, and incubator platforms.
Catalyst for transformation
