Industrial Revival of J&K

The economic narrative of Jammu and Kashmir has long been overshadowed by its political discourse. However, history stands witness that sustainable peace is invariably a byproduct of economic prosperity.

As we stand at the threshold of a new era, the focus must shift from mere subsistence to robust industrialization. The potential locked within the valleys, mountains, and human capital of this region is immense, yet largely untapped. To unlock this, we must shed the insular mindsets of the past and embrace a global, open-economy model—much like the liberalization of India in 1991 under Dr. Manmohan Singh.

The recent auctions of limestone blocks in Rajouri, Poonch, and Anantnag have ignited a beacon of hope. With estimates suggesting a reserve of a billion tons, we are looking at the genesis of a massive cement industry. This is not merely about extraction; it is about establishing a manufacturing hub that can serve the infrastructure needs of Northern India.
Parallel to this is the promise of Lithium. If the geological surveys translate into viable extraction, J&K could become the epicenter of India’s green energy revolution, evolving into a manufacturing hub for Lithium-Ion batteries. This alone has the potential to rewrite the fiscal destiny of the Union Territory.

However, reliance on mineral wealth alone is insufficient. We must look at our traditional strengths through a modern lens. Kashmir possesses a flourishing meat trade, consuming vast quantities of mutton. Yet, the byproduct—goat and sheepskin—is largely wasted or undersold.

Before 1990, the Kashmiri tannery industry was at its peak; it is time to revive it. A revitalized leather industry can feed into high-end fashion markets globally, turning a waste product into a premium commodity.

Similarly, our woollen industry, a natural derivative of our livestock wealth, has suffered a silent death. The influx of acrylic soft blankets and cotton-wool mixes from the rest of India decimated the local market, leading to the closure of iconic brands like ‘Poshish.’

This was not just a loss of a brand; it was a loss of identity and economy. There is a massive potential for revival here, but it requires a two-pronged strategy: modernization of production and a concerted awareness campaign. The new generation must be educated on the health benefits of natural wool versus synthetic acrylic. We need to make soft woollen quilts and blankets attractive, fashionable, and “cool” for the modern consumer. This industry creates a deep vertical of employment, offering jobs directly in factories and indirectly to shepherds and shearers.

The story of neglect continues in the wood and construction sector. Walk into any modern home in Srinagar, and you will see wooden paneling. Ask where it comes from, and the answer is almost always “imported.” Why? We have the timber; we have the artisans. The J&K Joinery Mills, once the pride of the state, lie in varying states of disrepair. These, along with the Kashmir Silk Factory, were victims of the classic Public Sector Undertaking (PSU) fatigue—systematic inefficiencies, lack of innovation, and bureaucratic management.

The solution is not to mourn their closure but to reinvent them. We cannot expect the government to run businesses efficiently; that is the job of the private sector. These dormant giants must be revived through Public-Private Partnerships (PPP). The assets belong to the state, but the management and innovation must come from private enterprise.

Take the carpet and rug industry, for instance. The traditional Kashmiri carpet is a masterpiece, but it is also expensive and time-consuming to produce. The modern consumer’s taste is changing; they want cost-effective products that look modern and can be changed every few years to match new interior trends. We need to pivot toward Computer-Aided Designs (CAD) that allow for customization and faster production. We must compete with the likes of IKEA in utility while maintaining our aesthetic heritage.

Furthermore, the infrastructure of daily life in Kashmir needs a technological overhaul. For centuries, the Hamam has been the center of winter life. While culturally significant, it is time to give the Hamam a decent farewell in favour of modern central heating systems.

We need to further encourage the manufacturing of the local solutions for full-house temperature control—making homes and hotels comfortable throughout the harsh winter. This is essential not just for the comfort of residents but to make Kashmir a viable year-round destination for high-end tourism.

Agriculture and horticulture, the backbone of our economy, are also crying out for value addition. We are plagued by road closures in late July and August, exactly when our high-quality pears are ready for market. The result? Crops rot, and farmers suffer. The solution is a robust canning and processing industry. If the fruit cannot go to the market, the market must come to the fruit in the form of processing units.

We need industrial-scale dryers for citrus, plums, apricots (khubani), and cherries. A fresh plum has a shelf life of days; a prune lasts for months. We must look at the Quince apple (Bum Chount), a fruit rich in vitamins that has lost its relevance because people are unaware of its food value. We need to bottle, jam, and market these products aggressively.

Consider the potential of our forests. The mountains of J&K are a treasure trove of herbs and botanicals. Currently, the trade in pickles, jams, and local produce is largely informal. We need to upscale this. A cosmetic industry based on Multani mitti, walnut scrub, almond oil, lavender oil, and saffron (Kesar) can rival global luxury brands. Some entrepreneurs are doing this, but they lack the branding power to go global. We need to package our heritage.

Why, for instance, do we not have a global mineral water brand? If Alpine water can sell for ₹300 a bottle in a five-star hotel, why not water from the glaciers of Kashmir? Bhutan has successfully exported its water; there is no reason J&K cannot.

The culinary arts of Kashmir are another untapped export. McDonald’s and KFC have outlets in J&K, invading our market. Yet, our bakeries—which are superior in taste and tradition—have not even reached Jammu, let alone Delhi. We should look at the success of the Hyderabad-based Karachi Bakery. They export worldwide. Why can’t a Kashmiri bakery cross the Banihal tunnel? Our Wazwan is legendary but is stuck in the wedding circuit. It needs to be commercialized and franchised. Harisa struggles to compete with Haleem globally because we have not packaged it for the modern palate.

This revival requires a fundamental shift in our thought process. The old slogan of “My Land, My Job, My Resources” is a recipe for stagnation. In Dubai, Emiratis make up barely 30% of the population, yet they have created an ecosystem where the world comes to invest, work, and build wealth for them. They have a Ministry of Tolerance to ensure all communities and faiths work together seamlessly.

We need Joint Ventures. We need to tell the world: “Come, invest, partner with us.” We cannot be superior by ourselves; we grow by collaboration. If we create a favourable policy environment, we can absorb at least one lakh educated youth into the state’s economy. The debate of Government vs. Private jobs is purely economic; if the private sector pays better, the youth will follow.

The revival of industry in J&K is not just about building factories; it is about building a future. It is about moving from an informal, cottage-scale economy to a branded, global powerhouse. It requires the government to facilitate, the private sector to innovate, and the society to open its mind. A strong economy is the first and most vital step toward lasting peace and progressive living. Let us open our doors to the world.

Lt Gen R S Reen, Director General Quality Assurance - DGQA (Retd)