How SPECIAL INDUSTRY INITIATIVE BOOST
THE ECONOMY of
JAMMU AND KASHMIR?
Answers
Answer:
Jammu and Kashmir (J&K) is a Union Territory (UT) of In dia, l ocated in the country’s northern part, and a global tourist destination. In addition to traditional recreational t ourism, a vast scope exists for adventure, pilgrimage, spiritual, and health tourism.
The economy is primarily services based and agri-oriented. Gross State Domestic Product (GSDP) increased at a CAGR of 10% between 2015-16 and 2018-19 to r each Rs. 1.56 trillion (US$ 22.31 billion). J& K’s NSDP increased at a CAGR (in Rs.) of 9.69% from 2015-16 to 2018-19 and reached Rs. 1.30 trillion (US$ 18.58 billion).
A vast natural resource base has enabled J&K to develop land fo r cultivating major fruits. With varied agro-climatic conditions, the scope for horticulture is signifi cantly high in J&K. Food processing and agro-based industries (excluding conventional gr inding and extraction units) thrive in the UT. J&K has an ideal climate for floriculture and an enormous assortment of flora and fauna.
J&K’s handicra fts are world famous and the traditional handicraft industry has emerged as a large industry. Due to its large employment base and export potential, the industry has been receiving priority attention of the government. The UT is also famous for its small-scale and cottage industries such as carpet weaving, silks, shawls, bas ketry, pottery, copper and silverware, papier-mâché, and walnut wood. The cottage handicrafts industry provides direct and gainful employment to around 340,000 artisans.
As of November 2020, J&K* had a total ins
Answer:
Jammu and Kashmir's economy is predominantly dependent on agriculture and allied activities.[57] The Kashmir valley is also known for its sericulture and cold-water fisheries. Wood from Kashmir is used to make high-quality cricket bats, popularly known as Kashmir Willow. Kashmiri saffron is also very famous and brings the state a handsome amount of foreign exchange. Agricultural exports from Jammu and Kashmir include apples, barley, cherries, corn, millet, oranges, rice, peaches, pears, saffron, sorghum, vegetables, and wheat, while manufactured exports include handicrafts, rugs, and shawls.
Horticulture plays a vital role in the economic development of the state. With an annual turnover of over Rs. 300 crore, apart from foreign exchange of over Rs. 80 crore, this sector is the next biggest source of income in the state’s economy.[58] The region of Kashmir is known for its horticulture industry[59] and is the wealthiest region in the state.[60] Horticultural produce from the state includes apples, apricots, cherries, pears, plums, almonds and walnuts.[58]
The Doda district has deposits of high-grade sapphire.[61] Though small, the manufacturing and services sector is growing rapidly, especially in the Jammu division. In recent years, several consumer goods companies have opened manufacturing units in the region. The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has identified several industrial sectors which can attract investment in the state, and accordingly, it is working with the union and the state government to set up industrial parks and special economic zones.[62] In the fiscal year 2005–06, exports from the state amounted to Rs. 1,150 crore.[63] However, industrial development in the state faces several major constraints including extreme mountainous landscape and power shortage.[64]
The Government of India has been keen to economically integrate Jammu and Kashmir with the rest of India. The state is one of the largest recipients of grants from New Delhi, totaling $ 812 million per year.[65] It also has a mere 4% incidence of poverty, one of the lowest in the country.[65] In an attempt to improve the infrastructure in the state, the Indian government has commenced work on the ambitious Kashmir Railway project which is being constructed by Konkan Railway Corporation and IRCON at a cost of more than US$2.5 billion.[66] The Jammu & Kashmir Bank, which is listed as a S&P CNX 500 conglomerate, is based in the state. It reported a net profit of Rs. 598 million in 2008.[67]
Before insurgency intensified in 1989, tourism formed an important part of the Kashmiri economy. The tourism economy in the Kashmir valley was worst hit. However, the holy shrines of Jammu and the Buddhist monasteries of Ladakh continue to remain popular pilgrimage and tourism destinations. Every year, thousands of Hindu pilgrims visit holy shrines of Vaishno Devi and Amarnath which has had significant impact on the state's economy.[68] The Vaishno Devi yatra alone contributes Rs. 475 crore to the local economy annually.[69]
Tourism in the Kashmir valley has rebounded in recent years and in 2009, the state became one of the top tourist destinations of India.[70] Gulmarg, one of the most popular ski resort destinations in India, is also home to the world's highest green golf course.[71] However with the decrease in violence in the state has boosted the states economy specifically tourism.