Srinagar, March 27: Jammu and Kashmir’s IT sector has recorded a sharp drop in new startups.
A cursory look at the data accessed by The Kashmir Monitor suggested that the sector has been witnessing a gradual fall in the emergence of new IT start-ups.
Compared to the emergence of 95 new IT companies in 2021-22, only 11 new IT companies were set up last year. Data revealed from 95 new IT companies in the year 2021-22, the number reduced to 69 in 2022-23, and 15 in 2023-24.
Figures also reveal the declining trend in the annual turnover of J&K’s IT sector. Compared to an annual turnover of Rs 38,60,70,442 in the year 2021-2022, it reduced to Rs 11,87,66,303 in 2022-24.
Moreover, the closure of IT businesses has further compounded the problem. Over the last six years, 94 IT companies have shut down operations in the region, indicating a lack of sustainability and investor confidence in the industry.
In the year 2019-20, 15 IT units closed operations in Jammu and Kashmir followed by 34, 42, 2 and 1 in the years 2021-22, 2022-23, 2023-24 and 2024-25.
Stakeholders blamed the lack of dedicated directorate, IT parks and clear cut policy behind the decline in the IT sector of Jammu and Kashmir.
“IT sector has been on a declining trend in Kashmir. The reasons are that we lack a separate IT directorate, which could streamline the process of establishing IT units. We would initially render our services to the government departments, which have now largely declined. There is a lack of seriousness from the government to foster the IT sector of Jammu and Kashmir,” said Mehraj Gulzar, former chairman of Information Communication and Technology Association (ICTA).
He said the current IT policy has not been implemented on the ground. “There has to be a clear-cut policy from the government. Establishing an IT unit is too hectic because of getting clearance from multiple departments,” Gulzar said.
He also said the past events discouraged companies from setting up their IT units in Jammu and Kashmir. “Some of the IT companies shifted their offices to other states. Many closed their offices because of the internet shutdowns in the past,” Gulzar said.
Officials said the infrastructure, and government support is being extended to the sector to ensure its complete growth in Jammu and Kashmir.
Minister of IT Satish Sharma recently said the government is committed to technological empowerment and capacity building.