Ever-Breathing Challenge for J&K's New Govt

As the new government prepares to take office after six years of President's rule in Jammu and Kashmir (J&K), it faces a daunting challenge: grappling with high unemployment. This century-old problem requires urgent attention and innovative solutions.

For more than a hundred years, employment in J&K has primarily been associated with government jobs. However, the limited number of such positions has created a significant gap between job seekers and available opportunities. While large industries have theoretically announced investments in the Union Territory (UT), private-sector job creation has been minimal. Moreover, those who do secure private sector employment often face under-compensation and job insecurity compared to their counterparts in other Indian states.

Given these circumstances, entrepreneurship emerges as a potential way forward. The government has introduced numerous initiatives to promote entrepreneurship among the youth. However, these efforts often remain on paper due to bureaucratic red tape and a challenging business environment.

At a recent UT-level bankers' meeting, the Chief Secretary criticised banks for rejecting applications for government employment generation schemes at an alarming rate. This highlights the need for a more facilitative environment in the state.

The incoming Omar Abdullah government views these matters with grave concern. While it recognises that the government sector cannot absorb every job seeker, there is an urgent need to make doing business in the UT easier. This would enable young entrepreneurs to establish units, start ventures, and engage in entrepreneurial activities more readily.
The new government needs to concentrate on several important aspects:

Streamlining bureaucratic processes: Simplify business registration and permit acquisition to improve access to government schemes.
Ease of doing business: Implement reforms to make the region more business-friendly, attracting both local and outside investors.
Boosting existing industries: Reintroduce and strengthen support schemes for existing industries, prioritising local entrepreneurs.
Facilitating investment: Balance the acceptance of outside investment while ensuring adequate support and opportunities for local businesses.
Increasing access to finance: Collaborate with banks and financial institutions to improve appraisal ratings for viable new business or startup proposals.
Skill development programmes: Implement programmes aimed at equipping youth with skills for self-employment or entrepreneurship.
Addressing private sector concerns: Ensure proper remuneration and working conditions in the private sector to attract more job-seekers.

The new government must understand that supporting and encouraging local talent and businesses is crucial to attracting outside investment. This approach should strike the right balance to contribute to developing a more robust and diverse job market in J&K.
The UT stands at a critical juncture. The success of the Omar Abdullah government will depend heavily on its ability to create an environment that supports job creation, encourages entrepreneurship, and provides sustainable employment opportunities in Jammu and Kashmir. While the road ahead is challenging, implementing the right policies and ensuring their proper execution is essential for improving the region's economic prospects.