Srinagar, (Samajweekly) A common misconception about Kashmir’s economy is that tourism is the largest industry here.
The fact is that the biggest industry is horticulture with an annual turnover of Rs 10,000 crore. Horticulture contributes 7.5 per cent to J&K’s GDP and employs 33 per cent of its population.
The total annual earning from the tourism industry in J&K is Rs 8,000 crore. This industry contributes 7 per cent to the GDP and employs 70,000 people, both directly and indirectly in Kashmir.
While the tourism industry has made a quantum jump during the last 2 years both in terms of footfalls and income, horticulture continues to suffer because of many reasons.
The horticulture industry is faced with competition from apples imported from Afghanistan, lack of efficient local quality control, middlemen intervention and the vagaries of weather like untimely snowfall, hailstorm etc.
The government planned a market intervention scheme to maintain the price of local apples, but most local apple growers argue that this scheme was not implemented as originally envisaged.
The lack of other industrial activities in Kashmir has forced educated, unemployed locals to look at government jobs as the chief source of sustenance. It is no wonder that J&K has the largest number of government employees as compared to other Indian states given the population figures.
Other than horticulture and tourism, there is hardly any other local industry that could sustain the demand for jobs generated by more and more educated youth adding to the list of the unemployed in Kashmir.
Traditional local arts and crafts have fallen into neglect. The once famous handwoven carpet industry of Kashmir is in the doldrums due to competition from Iranian carpets and the machine made stuff with computer designs and better turnout.
Those engaged in carpet weaving in Kashmir are now ensuring that their children do not join the family craft because of the bleak future this industry faces.
What is true of carpet weaving is also true of the local shawl making industry.
Once admired as the gift Emperor Napoleon gave to his lady love, Josephine, the local shawl industry is gradually disappearing into oblivion. Shawl making families are becoming fewer because the new generation of these traditional craftsmen does not like to continue the legacy.
The other local industry is papier-mâché. It still has a good market and does not face very serious competition in domestic and international markets.
The problem with this industry in becoming a major earner for Kashmir is the very small number of locals engaged in it with just some families in old Srinagar city working in it.
Walnut furniture making has been another traditional local industry. Authorities declared walnut a protected tree after Independence and its felling is prohibited under the law.
Unless dead and fallen, it is impossible for the walnut furniture makers to get their raw material. The result is that most of the walnut furniture makers are now engaged in refurbishing the old walnut furniture by polishing, re-design etc.
There are no big industries in Kashmir because of two main reasons. The difficulty in transporting raw material from outside and then transporting the finished products to terminal markets.
Transportation is one huge impediment in establishing big industries here.
The other insurmountable problem is the lack of electricity to run big industries.
The J&K government has been buying electricity from the northern grid etc at a much higher rate than it supplies to the consumers.
Power deficiency has grown exponentially in J&K and this has forced the government to ‘unbundle’ the electricity department.
Marketing at competitive rates, converting the department into a corporation, checking electricity pilferage and installation of smart meters are some steps taken to solve the problem.
Despite the government’s best efforts, electricity continues to elude Kashmir with heavy scheduled and unscheduled power cuts.
Unless electric power becomes sufficiently available, asking for establishment of big industries in Kashmir will remain a cry in the wilderness.
