January 8, 2021
The scheme will enhance the scope of the J&K Reorganisation Act, 2019 by promoting industrialisation.
GST incentives, block-level allocation of targets, registration and implementation of entities by the UT Governance are features.
An amount of US$ 153.68 million has already been allocated through multiple initiatives under the ambit of the scheme.
Small units are to receive an allocation of US$ 6.84 million and larger units are to receive 1.03 million.
A New Industrial Development Scheme for Jammu & Kashmir (J&K IDS, 2021) effective until 2036-37 with an outlay of US$ 3.88 billion has been introduced. The Scheme is set to catalyse growth within the services sector, redefine the investment ecosystem within the Union Territories and create 4.5 lakh employment opportunities. With the aim of enhancing the scope of the J&K Reorganisation Act, 2019 an amount of US$ 153.68 million has already been utilised through a wealth of schemes. GST-linked incentives, block-level concentration of policy goals, UT government carte blanche to take up registrations and implementations are among the key features of the scheme. The scheme will look to increase financial outflow and strengthen units both large and small with dedicated incentives of US$ 1.03 million and US$ 6.84 million respectively.
Siddhartha Prakash documents that industrial policymaking in Kashmir requires to be rooted in the realities of the system. In the 1950s, he observes, it would appear that measures promoting the extraction of sugar from beetroots wouldn’t result in the desired outcomes owing to unpredictabilities in beetroot production. It is imperative that a Green Revolution to maximise agricultural outputs should be complemented by policymaking conducive to strengthening the Union Territories’ industrial capabilities. Once this is achieved, it will be easier to attract investments from the private sector. Furthermore, the IT/ITes sector and startup ecosystem should also be priority areas such that the Union Territories achieve sustainable growth and self-sufficiency. Given the internal and external disruptions that occur within the Union Territories, it is imperative to insulate the local market economy against these threats. Existing enterprises in the handloom and agricultural sectors need to be shaped into profit-making entities such that they become part of a new, game-changing economic ecosystem. The Union Territories of Jammu and Kashmir can be transformed into economic powerhouses through focused policymaking, effective implementation, and periodic monitoring of progress made on targets.