“The bold step (of the government) would open up a flow of investment into the state in sectors like tourism, real estate, handicrafts, horticulture and food processing, also The multiplier impact would increase the employment opportunities and contribute to India’s all-round prosperity for future. ” pointed out ASSOCHAM president B.K.Goenka.
Article 370 which grants special status to Jammu and Kashmir was scrapped on Monday by the central government. A special development plan for Jammu and Kashmir has been worked out which includes setting up industries, state of art education institutes, healthcare facilities etc.
A lot of steps and plans have come into the picture for the entrepreneurial and industrial growth of the valley. Many industrialists have shared their plan others are yet to understand the potentials of this resourceful place.
Investors meet, a real estate boom and also industrialist eye towards the valley will contribute towards the much-needed revolution in Jammu and Kashmir for better employment opportunities and infrastructure development.
Investor meet in J&K
“Jammu and Kashmir is an area of strong potential for development as it enjoys a range of natural resources and immense talent,” stated CII president-designate Uday Kotak
Keeping the development in J&K in mind, an investor’s summit has been planned in J&K by the central government in October, in which major industrial groups are expected to participate and unveil concrete ideas for investment in sectors including hospitality, pharmaceuticals, agro-processing and healthcare for the valley.
The State Administrative Council (SAC) which met under the chairmanship of Jammu and Kashmir Governor Satya Pal Malik, accorded sanction to the holding a mega event and that is J&K Investor Summit, 2019. The opening ceremony for the event will be held in October at Srinagar, followed by closing at Jammu.
The Confederation of Indian Industry (CII) applauded the sanction and said, “The hosting of the JK Investor Summit will provide the state with an opportunity to showcase its strengths, strategies and potential. Participating trade and industry organizations will come to know firsthand about the business-friendly policies of the government, assess infrastructure, natural resources, raw material and skill and unskilled manpower available and identify business opportunities in the State. It will present immense opportunities to develop contacts between the State and business community and between the local and outside business community, with the same vision and possibilities to develop. For the State like J&K, the Investor Summit will provide an opportunity to allay fear and apprehensions from the minds of outside trade and business community and work towards a Kashmir which is living up to its full potential.”
Real estate boom in Kashmir
“Truly historic for the nation if it opens the gateway for development and peace in Jammu and Kashmir,” tweeted industrialist Gautam Adani.
Now, with both Articles gone, J&K will be governed by the same rules as the rest of the country, which means any Indian citizen can buy property in the state, take up a job and most importantly, invest in industry and trade initiatives in the state. The depressed property prices in Jammu and Kashmir will shoot up by up to 50 per cent because of the opening up of the realty market after the government’s decision to revoke Article 370.
“Real estate transactions so far have been highly restricted in Jammu and Kashmir creating a lot of issues. As a result, market appreciation of property has been curtailed and people are not gaining much. Once it is opened to all, there will be a demand for purchasing properties and that may drive up prices leading to more opportunities for the locals,” Pankaj Kapoor, founder and MD of real estate consultancy Liases Foras
Real estate prices in the Valley are also among the most undervalued in the country, as demand was low since only locals could own land. In Srinagar’s prime Pantha Chowk area, houses can be bought for as low as Rs 2,300 per sq ft making it difficult for people to earn and work rationally. Besides local markets, the place has a stadium and a Kendriya Vidyalaya, but property prices are among the lowest in India, even lower than in the outskirts of most tier 2 cities. With that limitation gone, money could flow into properties, and to set up new businesses, in the state soon.
Prestigious business leaders Harsh Goenka, Sajjan Jindal and Motilal Oswal hailed the move by the centre. To give a much larger picture to Jammu and Kashmir other than tourism by promoting investments, the state department of Industry and Commerce has reached out to several corporates including ITC, Tata Group, Suzlon Energy, Mahindra Agrotech, UltraTech Cement, and Radisson Hotels to participate in its first Investors Summit likely to be held in October-November under the supervision of the Prime minister of India.
“It is a much-awaited move by Prime Minister Narendra Modi and Home Minister Amit Shah to overrule Article 370. This move ensures that J&K enters the Indian mainstream and becomes a part of our nation’s collective growth,” said Steelbird Helmets Chairman Subhash Kapur.
Top consultancy firm Ernst & Young has helped the officials of Jammu and Kashmir to identify not only potential investment opportunities, but also key hurdles such as land laws, poor transport, and delay in clearances that might affect the business environment they are planning to create. They have plans to improve tourism and hospitality. Along with that, they have identified pharmaceuticals, food processing, healthcare, education and manufacturing as likely focus areas for Jammu, and healthcare, dairy, renewable energy, handicrafts and horticulture for Kashmir, thus having a combination of both manufacturing and service.
This is a great move from the entrepreneurial aspect. This will bring major changes if the nation was integrated and strong. In this way, prosperity will follow. This will not only lead to new opportunities for the valley but the impact will be seen on the nation as a whole.