The recent militant attack in Phalgam has cast a long shadow over the Kashmir Valley’s tourism sector, a vital economic pillar contributing over 7% to Jammu and Kashmir’s GDP. With tourist arrivals plummeting, the region’s economy faces a critical challenge. While tourism has long been a lifeline, its vulnerability to security disruptions underscores an urgent need for diversification. The government’s heavy reliance on horticulture, though significant, cannot single-handedly sustain the Valley’s economy. To build a self-reliant Jammu and Kashmir, the industrial sector must be prioritized as a cornerstone of economic stability. However, the sluggish pace of the Industries Department and systemic delays in policy execution are stifling progress, leaving Kashmir’s economic potential in limbo.
The decline in tourism is not a new phenomenon; it is a recurring setback tied to the region’s volatile security landscape. While horticulture, particularly apple production, remains the backbone of the economy, it is seasonal and susceptible to market fluctuations and climate challenges. Industry, on the other hand, offers a pathway to consistent employment, sustainable growth, and reduced dependence on external factors. Yet, the Industries Department’s inefficiencies are a glaring roadblock. Entrepreneurs who applied for industrial land in 2021 are still waiting for approvals, while those allotted land remain mired in indecision about what to manufacture. This bureaucratic inertia is unacceptable in a region desperate for economic diversification.
The government must act swiftly to overhaul the industrial framework in the Kashmir Valley. First, it must hold the Industries Department accountable for delays. A transparent timeline for land allocation and project approvals should be enforced, with strict penalties for non-compliance. Second, a clear policy to fast-track industrial setup is critical. This could include single-window clearance systems, tax incentives, and streamlined environmental approvals to encourage businesses to establish units at the earliest. The government should also provide guidance to entrepreneurs on viable manufacturing sectors—such as food processing, handicrafts, or renewable energy—aligned with Kashmir’s resources and market potential.
Moreover, the state must foster an ecosystem that empowers the business class. Access to credit, skill development programs, and marketing support for local products can transform small-scale enterprises into engines of growth. The success of industrial estates in other parts of India, such as Gujarat and Tamil Nadu, offers a blueprint: proactive governance, robust infrastructure, and investor-friendly policies. Kashmir, with its skilled workforce and strategic location, has untapped potential to emulate this model.
The government’s focus on horticulture, while necessary, must not overshadow the need for a diversified economy. Tourism will recover in time, but banking solely on its revival is shortsighted. Industry can provide the stability that Kashmir desperately needs, creating jobs for the youth and reducing the region’s economic vulnerability. The time for complacency is over. The government must act decisively to streamline the Industries Department, empower entrepreneurs, and unlock Kashmir’s industrial potential. Only then can the Valley move toward a future of resilience and self-reliance.
