Trying to build ecosystem around innovation: CM Omar
Srinagar, Oct 14: Jammu and Kashmir is positioning itself as an emerging destination for innovation-driven industries, with Chief Minister Omar Abdullah highlighting concrete business developments and infrastructure improvements that are attracting renewed investor interest to the region.
Speaking at a special session of FICCI’s National Executive Committee in Srinagar — the first such gathering in the region in 15 years, the CM outlined sectoral opportunities whilst acknowledging the region’s recent economic headwinds.
The CM also outlined prospects in pharmaceuticals, packaging, horticulture and agriculture, electronics, and information technology-enabled services. The territory is partnering with the Indian Institute of Technology Jammu to build a startup and innovation ecosystem, with the government providing financial resources and infrastructure, whilst IIT contributes expertise and institutional networks.
"We are trying to build an ecosystem around innovation," CM Abdullah said, acknowledging that the territory has yet to market itself for innovation-driven investment beyond basic manufacturing successfully. “Based on the inputs that we get, we are more than happy to take a look at and actually implement policy adjustments to attract such industries”, he said.
The government is also exploring luxury brand partnerships for Kashmir's traditional products, including saffron, shawls, and Pashmina. Abdullah confirmed that Geographical Indication tagging is being implemented to ensure authenticity, though he acknowledged that interest in high-end brand storytelling has been "broken or sporadic."
A new convention centre in Gulmarg aims to position the territory for meetings, incentives, conferences, and exhibitions tourism, with the chief minister suggesting a potential partnership with FICCI to develop a signature annual event comparable to existing world-class events.
As per an official statement, the CM said that the agriculture sector in Jammu and Kashmir holds immense potential and requires focused attention towards value addition to unlock full gamut of business opportunities across Jammu and Kashmir. The Chief Minister said that most of the produce from Jammu and Kashmir leaves the region in its raw form, with very little processing or value addition being done locally.
Citing the dairy sector as an example, CM said that only about 4–5 percent of the J&K’s dairy production is processed within Jammu & Kashmir, while the rest goes unprocessed into the market. He urged industry leaders to explore these areas for investment and growth. The meeting was attended by FICCI President Harsh Vardhan Agarwal, Senior Vice President Anant Goenka, Director General FICCI Jyoti Vij, Past President Dr. Jyotsna Suri, Chairman FICCI J&K Council Mushtaq A. Burza, and members of the National Executive Council.
The revision in GST rates is expected to reduce the tax collection of Jammu and Kashmir by up to Rs 1,000 crore this fiscal, the CM said.
"The revision of GST rates alone will reduce our earnings by Rs 900 to Rs 1000 crore, and for a state like Jammu and Kashmir, which is already in deficit, it is a lot of money," he said. The chief minister said the torrential rains across Jammu and Kashmir from July to September have severely affected the agriculture and horticulture sectors of the union territory.
"This has been a major dent to the economy," he added. (With PTI inputs)
