by Javaid Iqbal
Kashmir can create a more diverse and resilient economy by prioritising ease of doing business reforms, attracting private investment, and developing key sectors.
As Jammu and Kashmir prepares for the polls, voters are being enticed by a promise that is as seductive as it is perilous: government jobs. With youth unemployment hovering around 25 per cent, political parties are vying to pledge thousands of new public sector positions. However, this approach is a recipe for economic stagnation, not salvation.
The harsh reality is that Kashmir cannot afford to expand its already bloated public sector. Years of unrest, the pandemic’s economic toll, and the seismic changes following the revocation of Article 370 have left the region’s finances in disarray. In this fiscal quagmire, promises of government job creation are irresponsible and economically impossible. It would be a grave mistake even if Jammu and Kashmir could somehow secure the funds for a public-sector hiring spree. Government jobs are not a panacea for economic woes; they are a placebo that masks deeper structural issues while creating new ones.
Flooding the market with government positions has devastating consequences: it crowds out private investment, stifles innovation, and perpetuates a culture of dependency. This approach sends a clear message to the youth: do not strive to create, innovate, or take risks – simply wait for a secure government paycheck. Such a mentality is toxic to economic growth and dynamism. Furthermore, an oversized public sector becomes a hindrance to the very economy it is supposed to serve, creating inefficiencies, increasing bureaucratic red tape, and failing to expand the tax base necessary for genuine development. This scenario has played out disastrously across India and the developing world and Kashmir cannot afford to repeat these mistakes.
Consider Madhya Pradesh’s innovative “One District One Product” scheme, launched in 2020. This initiative identifies and promotes a unique product from each district, providing targeted support for its development and marketing. The results are impressive: local industries have received a significant boost, and new job opportunities have been created in rural areas. Notably, the scheme has already led to a 25 per cent increase in exports of these identified products.
Even smaller states like Sikkim, which shares some geographical similarities with Jammu and Kashmir, have made notable progress. Sikkim’s Organic Farming Policy, fully implemented in 2016, has revolutionized the state’s agriculture sector. By promoting organic farming and creating a distinct brand identity for Sikkim’s produce, the state has increased farmer incomes and spawned a host of small and medium enterprises in food processing and eco-tourism.
Critics will argue that Jammu and Kashmir’s unique security situation and underdeveloped private sector necessitate a strong government presence. They will claim that major companies are wary of investing in the region and that the private sector cannot absorb the workforce quickly enough. While these concerns are valid, they represent a failure of imagination and policy, rather than an unavoidable reality.
The path forward for our youth lies not in more government jobs, but in creating an environment conducive to private enterprise flourishing. This requires a fundamental shift in both policy and mindset.
First, Jammu and Kashmir must drastically improve its ease of doing business. The region needs to significantly reduce bureaucratic hurdles, streamline regulations, and create a genuinely business-friendly environment. This entails digitizing processes, simplifying tax codes, and ensuring expedited approvals for critical sectors. The success of Odisha in this area, which jumped from 14th to 3rd in ease of doing business rankings between 2015 and 2019, demonstrates what can be achieved through focused reforms.
Second, the next government must prioritize attracting private investment above all else. This could involve establishing special economic zones with tax incentives, creating a single-window clearance system for investment proposals, and actively courting both domestic and foreign investors.
Third, Jammu and Kashmir need to capitalize on sectors where it has natural advantages. Horticulture, handicrafts, and information technology offer immense potential. With the right policies and infrastructure, Kashmir could transform itself into a competitive hub for these industries. Sikkim’s success in organic farming demonstrates how environmental sustainability can drive economic growth. Kashmir, with its natural beauty and agricultural heritage, is well-positioned to adopt a similar approach.
Fourth, addressing the skills mismatch in the labour market is crucial. This requires overhauling vocational training programs, fostering partnerships between educational institutions and private companies, and promoting digital literacy. Jammu and Kashmir should take a cue from states like Kerala, which has recently revamped its skill development programs to align closely with industry needs. The Additional Skill Acquisition Programme (ASAP) Kerala, launched in 2021, offers industry-relevant courses and has already trained over 85,000 youth.
Finally, Jammu and Kashmir must invest heavily in infrastructure. Modern power systems, improved transportation networks, and expanded broadband access are essential foundations for private sector growth.
The region’s youth are talented, ambitious, and eager for opportunity. They do not need the false security of a government job; they need an economic environment that fosters their entrepreneurial spirit. Creating this environment should be the singular focus of Jammu and Kashmir’s next government.
The challenges facing Kashmir are indeed immense, but so too is its potential. With the right policies and a commitment to private sector growth, the region can transform its economy and create a brighter future for all its residents. It is time for our political leaders to move beyond outdated economic models and embrace a truly progressive vision for development.
The next government faces a pivotal moment. It must choose between perpetuating unrealistic expectations with unsustainable promises of government jobs or charting a new course focused on creating an environment conducive to private enterprise flourishing. Kashmir can create a more diverse and resilient economy by prioritising ease of doing business reforms, attracting private investment, and developing key sectors. This approach will generate more sustainable employment opportunities, increase the region’s economic output and tax base, and provide the resources needed for public services and development.
As voters head to the polls, they should critically evaluate the economic promises being made. They should ask themselves: which policies will truly set Kashmir on a path to sustainable growth and opportunity? The answer, I firmly believe, lies not in expanding government payrolls, but in unleashing the power of private enterprise.
The future of Kashmir hangs in the balance. It is time to choose wisely.
(The author is an Economist. Ideas are personal)