Dr Andareas Peter
With the ability to fuel the region’s economic growth and prosperity, Jammu & Kashmir’s industrial development has long been an issue of tremendous relevance. In a recent significant high-level meeting in New Delhi, the Central Sector Scheme for Industrial Development in the Union Territory was reviewed under the leadership of the Union Home Minister Amit Shah and Lieutenant Governor Manoj Sinha. In several fields, including industrial development, Jammu and Kashmir has long been seen as having enormous untapped potential. However, due to historical unrest and political complexities, attracting substantial investments has remained a challenge. The meeting chaired by Amit Shah, with top officials from the Jammu and Kashmir administration and the Ministry of Home Affairs in attendance, signifies a pivotal step towards unleashing the region’s potential and rejuvenating its industrial landscape.
One significant highlight of the meeting was the decision to enhance the limit of investments under the Capital Investment Incentive for the Health Sector. Acknowledging the pressing need for improved healthcare facilities, especially in the context of the ongoing COVID-19 pandemic, the government aims to encourage investments in the health sector. This move not only addresses the immediate healthcare requirements of the population but also opens new avenues for businesses and employment in the region. Another key aspect discussed during the meeting was the proposal to permit phase-wise investment by industrial units under the New Central Sector Scheme (NCSS) for Industrial Development of Jammu and Kashmir. This approach ensures a more systematic and strategic implementation of industrial projects, fostering sustainability and effectiveness in the region’s economic growth. Additionally, it provides businesses the flexibility to align their projects with the changing market dynamics, enhancing their overall success prospects. Recognizing the pivotal role of private investments in driving economic growth, the meeting focused on attracting more private capital to Jammu and Kashmir. To achieve this, the government aims to streamline policies and offer incentives to entice domestic and international investors. The Industrial Development Scheme has been effective, demonstrating the rising interest among potential investors in the area, with investment requests totaling more than Rs 70,000 crore.
Jammu and Kashmir’s private industrial estate development is subject to rules set forth by the government in an effort to boost private investment. These estates will be eligible for the Capital Infrastructure Subsidy based on their investments, encouraging developers to invest in industrial infrastructure. This strategic move aims to create an environment conducive to business growth and stimulate economic progress across the Union Territory. The meeting also emphasized the significance of industrial development in creating substantial employment opportunities for the youth of Jammu and Kashmir. By involving the local workforce in industrial activities, the region can address the pressing issue of unemployment and foster economic empowerment and social development.
Despite the promising developments discussed during the review meeting, it is essential to acknowledge the challenges that lie ahead. The region has historically faced security concerns and a hilly region, which may deter some potential investors. To attract investments, the government and the administration must collaborate to create a stable and investor-friendly environment. Additionally, improving infrastructure, including transportation and connectivity, is vital to attract businesses from diverse sectors. As industrial development gains momentum, it is equally crucial to ensure a diversified approach to economic growth. Jammu and Kashmir possess immense potential in sectors like tourism, agriculture, and handicrafts, which should not be overlooked. A holistic approach that encompasses multiple sectors can foster balanced and sustainable growth for the region.In this journey towards progress, empowering local entrepreneurs and businesses holds paramount importance. As investments pour in, it is essential to ensure that local talent and enterprises actively participate in industrial activities. Local entrepreneurs can grow inclusively and feel more pride and ownership in the region’s development by receiving training and support. The high-level meeting presided over by Union Home Minister Amit Shah with Lieutenant Governor Manoj Sinha is a key step towards realizing Jammu and Kashmir’s economic potential through industrial growth. The decisions taken during the meeting, such as bolstering investments in the health sector, permitting phase-wise investments, and encouraging private capital, hold the promise of transforming the region’s economic landscape. However, achieving sustainable and inclusive development will require continued efforts to create a conducive environment, address challenges, and embrace diversified economic approaches. With the right strategies and collective determination, Jammu and Kashmir can truly become a beacon of sustainable and inclusive development in India.
Further, the growth of ancillary units through the establishment of industrial clusters and mother units holds immense potential in facilitating a robust supply chain and contributing to the overall development of industries in the region. Simultaneously, there is an immediate need to simplify administrative procedures in the enterprise concerning the change of constitution, change of activities, substantial expansion & modernization programme linking with fiscal and financial incentives as good as new enterprises, additional line of activities, transfer of land, rehabilitation of sick units, scrapping of EM Part-I & II cumbersome registration procedure & replacing with only streamlined Udyog Aadhar Number already in existence and above all decentralization of complete powers to respective General Managers of DICs, except in case of large industrial enterprises and ensuring transparent and prompt & time bound disposal, abolition of unnecessary multiple committees at different stages for different approvals and sanctions, are essential factors in attracting investments and would further enhance the ease of doing business. A comprehensive study should be conducted to determine the time required for an enterprise to set up in Jammu and Kashmir, allowing for factual comparisons with industrially advanced states and further creation of Special Economic Zones (SEZs) with reduced or tax-free will act as a magnet for both foreign and domestic investors. By creating an investor-friendly environment and minimizing bureaucratic obstacles, businesses will find the region more attractive for investments. Additionally, the expansion of industrial clusters targeted at particular industries can encourage the creation of supporting businesses, fostering the building of a thriving industrial ecosystem. Encouragement of R&D activities will boost creativity, competitiveness, and technology, making the area a desirable location for forward-thinking businesses looking for cutting-edge solutions.
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