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Wednesday, May 27, 2026

 Investment climate

 

Chief Minister Omar Abdullah has vowed to address infrastructural constraints to make Jammu and Kashmir a more attractive destination for investment and manufacturing. Speaking during an interactive session at the Federation of Indian Export Organizations, Omar acknowledged the unique challenges that J&K faces due to its geography and limited resources. He stressed harnessing potential in agriculture, horticulture, handicrafts, pharmaceuticals, IT services, and electronics. Chief Minister minced no words when he said Jammu and Kashmir has been deprived of business confidence for the past 35 years. However, things have started opening up, and investments have started trickling in, particularly in the last five years. Figures speak louder than words. Jammu and Kashmir has attracted investments worth ₹10,516 crore since 2019. Of which, ₹3,407.63 crore had been invested in Kashmir, while Jammu received ₹7,108 crore. The investment in Kashmir stood at ₹164.37 crore in 2019-20, ₹148.89 crore in 2020-21, ₹125.87 crore in 2021-22, ₹737.36 crore in 2022-23, and ₹1,423.17 crore in 2024-25 (until February 25, 2025).  A record 2.35 crore tourists visited Jammu and Kashmir in 2024. Domestic tourist numbers shot up tenfold — from 25.19 lakh in 2020 to 2.35 crore in 2024. Foreign tourist arrivals also jumped from just 5,317 in 2020 to 65,452 in 2024. Given the geographical disadvantages, the government is focusing on MSMEs and high-value, low-volume industries. The government wants to make the region a manufacturing base. Before 1989, when terrorism broke out, Kashmir was emerging as a hub for new high-tech manufacturing industries. Thirty-five years on, the government wanted to revive the model to make J&K an industrial hub again.  Geographical disadvantage, which hindered the investment, has been taken care of to some extent. Before 1989, we had only one highway, which was shutting down frequently due to weather vagaries. This time we have two highways, though they are still prone to landslides and shooting stones. The silver lining is the Srinagar-Jammu train. The train to Kashmir is fast becoming a lifeline for the people of the landlocked valley. The arrival of the goods train in Kashmir has spurred hope that connectivity will not be a problem. Likewise, we had limited flights in 1989; however, this time we have double-digit flights operating daily.  Investors always look for facilities, connectivity, and a conducive environment. The government is working on all three. The Modi government and LG administration deserve kudos for instilling confidence among the investors.  The Chief Minister is right when he highlighted several advantages that could support renewed industrial growth in the region. These include competitive electricity rates, an educated young workforce, and favourable policy frameworks. However, he acknowledged that the perception of the region as a risky business destination has to change for the better. Hope India Inc. will play its part in the economic integration of Kashmir.