Avinash Azad
The Jammu and Kashmir government’s recent disclosure in the Legislative Assembly has once again brought to the fore the glaring disparity between the tall claims made before the Supreme Court by the Union government and the grim reality of investments on the ground.
Responding to a query by MLA Budhal, Javed Iqbal Choudhary, the government revealed that the total industrial investment in J&K post-2019 stands at a meager Rs 10,516.48 crore. This figure, which includes Rs 3,407.63 crore in Kashmir and Rs 7,108.85 crore in Jammu, falls significantly short of the expectations set by the Centre in its arguments before the apex court during hearings on the abrogation of Article 370.
Tall Claims vs Harsh Reality
During the Supreme Court hearings on December 12, 2023, the Union government had forcefully argued that Article 370 was a major hindrance to the economic development of Jammu and Kashmir. It claimed that after its abrogation in August 2019, investment had begun to flow into the Union Territory, with proposals worth Rs 84,544 crore across 42 industrial sectors. The Centre had insisted that this would lead to an economic transformation in J&K, paving the way for large-scale industrialization and job creation.
However, nearly three years after the announcement of the New Industrial Policy in January 2021, the pace of investment realization has been disappointingly sluggish. The stark contrast between the proposed investment figures presented before the Supreme Court and the actual on-ground investments exposes the widening gap between rhetoric and reality.
Unfulfilled Promises: A Policy Framework with Little Ground Impact
The government, while listing various policy measures such as the New Central Sector Scheme (NCSS) 2021, J&K Industrial Policy 2021-30, and the J&K Private Industrial Estate Development Policy, failed to explain why these policies have not yielded significant results in attracting large-scale investments.
The single-window clearance mechanism, foreign investment promotion initiatives, and the Turnover Incentive Scheme introduced post-2019 were aimed at facilitating ease of doing business. However, the dismal investment figures suggest that these policies have largely remained on paper, failing to translate into tangible economic gains for the region.
The Investment Illusion: Where are the Big Investors?
Despite repeated claims of interest from multinational corporations and industrial giants, the lack of large-scale investments indicates a clear reluctance of major players to commit resources in J&K. Concerns over security, infrastructure bottlenecks, and bureaucratic hurdles continue to deter investors. Additionally, the government’s failure to provide a division-wise breakdown of foreign direct investment (FDI) further fuels speculation that international investment in the region remains negligible. The lack of transparency in presenting comprehensive data only adds to the growing skepticism surrounding the government’s investment narrative.
Beyond Rhetoric: Need for Accountability and Policy Overhaul
The figures presented in the Legislative Assembly are a wake-up call for both the J&K administration and the Union government. The failure to convert high-value investment proposals into actual economic activity exposes the systemic challenges that remain unaddressed despite policy interventions.
If the government is serious about transforming J&K’s economic landscape, it must move beyond mere announcements and focus on removing barriers that impede investment. Ensuring security, streamlining bureaucratic procedures, and improving infrastructure should be the top priorities. Moreover, an independent assessment of why J&K has failed to attract its projected investments must be undertaken to rectify policy flaws.
Hollow Promises Won’t Revive J&K’s Economy The data disclosed by the J&K government has debunked the Centre’s claims made before the Supreme Court. The investment reality is far from the promised economic boom, and unless urgent corrective measures are taken, J&K will continue to struggle in its quest for industrial transformation. The government can no longer afford to mask its failures with exaggerated claims. It’s time for genuine accountability, concrete action, and an honest reassessment of policies if Jammu and Kashmir is to witness real economic progress post-2019.
