J&K nets Rs 5319 crore investment in 5 years

Srinagar, Dec 31: Amidst a concerted effort to attract investments in Jammu and Kashmir, the Union Territory has realised a total investment of Rs 5319 crore over the last five years.

Official figures from the fiscal year 2019-20 till November 2023 indicate a positive trend in investments, with the highest recorded in the previous fiscal year, poised to be surpassed in the current year.

In 2019-20, investments totalled Rs 296 crore, rising to Rs 412 crore in 2020-21. Rs 376 crore in 2021-22 and a substantial increase to Rs 2153 crore in 2022-23. The ongoing fiscal year has already recorded investments worth Rs 2079 crore, bringing the cumulative total to Rs 5319 crore.

Lieutenant Governor Manoj Sinha in October highlighted that Jammu and Kashmir has attracted investment proposals amounting to Rs 86,624 crore, establishing itself as a preferred destination for industries under the Industrial Development Scheme.

Jammu and Kashmir has witnessed a substantial surge in investments, reaching Rs 2153.45 crore during the fiscal year 2022-23, as per the Compendium of Industries and Commerce Department.

"This marks the highest recorded investment in J&K over the past decade, signifying a remarkable economic transformation. These investments have not only bolstered the Union Territory's economy but have also resulted in the creation of thousands of jobs, with direct employment totalling 11,091 and indirect employment, including subcontracting, reaching 5,582," the compendium mentions.

It said that the Pradhan Mantri Employment Generation Programme (PMEGP) has played a pivotal role in providing employment opportunities, benefiting 77,743 individuals. The compendium reveals that a staggering 6231 investment proposals, with a cumulative investment of Rs 87,923 crore, have been received, potentially offering employment to 3,92,162 individuals.

The introduction of the New Central Sector Scheme (NCSS) by the Central Government has been a catalyst for this economic resurgence, offering a substantial financial outlay of Rs 28,000 crore to encourage new investments in Jammu and Kashmir. With an impressive return on investment (ROI) of up to 400%, this scheme provides fiscal incentives to MSME players, promoting the establishment of units within the Union Territory.

The Industries and Commerce department highlights the positive impact of the new industrial policy, noting that the average investment per kanal has surged to Rs 2.24 Crores, a significant increase from the previous Rs 0.24 crores per kanal, based on land premium received. This underscores the success of strategic economic policies in fostering growth and attracting investments to Jammu and Kashmir.

However, the Federation of Chambers of Industries Kashmir (FCIK) has been demanding an overhaul of the existing industrial policy in Jammu and Kashmir. FCIK representatives have highlighted the confusion stemming from three concurrent industrial policies (2016-26, 2021-30, and Central Industrial Development Scheme 2021-37). They proposed amalgamating these policies into a single, comprehensive framework to eliminate confusion and facilitate a level playing field for existing and potential enterprises. The move aims to streamline procedures and enhance clarity for entrepreneurs and officials alike.