On road to industrialization

On road to industrialization

Kashmir watchers, especially those belonging to the field of political economy, have always stressed that the J&K State will achieve real and lasting prosperity only when it is judiciously industrialized keeping in mind the geography and ecology of the State. This issue has seen many ups and downs in the course of the history of the State in post independence period. Even the Economic Advisor to the Prime Minister, while on his mission to the State for exploring possibilities of upgrading skills and technological efficiency of employment seekers had very emphatically touched on the issue of boosting State’s industries in order to provide more jobs for the unemployed youth. The State Government appears to have realized the importance of improving industrial health of the State by contemplating some innovative and effective measures in this regard. The recent meeting of the Industrial Advisory Committee, held under the chairmanship of the Chief Minister, has taken some good decisions in the interests of boosting industrialization process in the State and providing incentives to the entrepreneurs both old and new ones. The first important step in this direction has been the decision of the Committee to identify sick industrial units which had been closed down after their performance was no more profit bearing. About 50 such units have been identified and recommended for revitalization. The Government will provide both infrastructural support and expertise in the production and marketing of their products. Some of these units had been established by their entrepreneurs with the assistance of the Central Government but when that assistance was withdrawn after some time and under certain agreed conditions, the units could not survive and had to be closed down. The Government will consider how these units can be revived and thus provide not only jobs but also help the economy of the State.
An industry run on scientific and modern lines asks for skilled manpower to run it efficiently. Industrialists establishing units in the state generally complained lack of skilled manpower and its adverse impact on the health of the industry. The Government’s policy has been that these industries will employ 90 per cent local hands and the remaining may be brought from other parts of the country. Since the Committee found that this was a rather harsh condition, it agreed to review the same. Now under revised conditions the industries will be allowed to retain 55 per cent local manpower and the remaining may be brought from other states. But the industries will have to increase 5 per cent manpower every year and finally in seven years bring it to 90 per cent, the original target. This is surely a healthy decision in the sense that in due course of time local manpower will become skilled and proficient to run the industries. Just employment of workers is not enough; they have to be skilled and well experienced. Therefore imparting skills also will form part of industrialization policy of the State. To fill the existing skill-gap, the meeting also emphasized on the active involvement of private industry in the Skill Development Programme being implemented for enhancing employability of local youth. The industrialist would need to tie-up with State -run ITIs’ and Polytechnics and act as equal partners in the process of imparting training to youth in skills required in various industrial disciplines.
This is the beginning of a long march towards industrialization of the State. Many more reforms will have to be made and many more new ideas to be infused in industrialization plan. The more important thing is sustainability of the units after these have taken off with government’s initial support. An industrial unit has to be self sufficient and self generating and that certifies the health of the unit. We need adventurous entrepreneurship that does not want to remain dependent on the doles from the Government. A pragmatic decision taken by the Committee is that of carrying the spirit of industrialization to rural and cut off areas. Obviously unless all areas of the State are given equitable treatment, uniform economic prosperity cannot be imagined. Revival of the Committee under the State’s Economic Advisor is the proper instrument to introduce industrial culture into the rural areas of the State. All these measures are in the interests of the State and its prosperity. We hope that progressive industrial policy of the State will be an impetus for entrepreneurs from within and outside the State to boosting industrialization movement. But at the same time the Government shall have to be cautious not to impose such severe conditionalties for outside investment and entrepreneurship that might ultimately result in dampening of the spirit of investment in the industrial sector of the State.