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Need to improve living standard

Young Bites. Dated: 7/19/2017 10:57:57 AM

Since 1989, terrorist activity and violence have shattered peace and disrupted economic stability in Jammu and Kashmir. The constant threat to economic resources from rising militancy has led to its over-dependence on central government funding. Though the extent of poverty (10%) in the state is not high relative to other states, a telescopic view shows chunks of poor population across the state. The eastern part of the state accounts for a large part of its poor population. The three districts, Jammu, Kupwara and Anantnag together account for one-third of the total poor in the state. Since the northern and western parts of Jammu and Kashmir are largely uninhabitable, big pockets of poor population may not be seen in those areas. Yet, a large segment of the population residing around the barren areas classified as forest in Ladakh and also the surrounding areas of snow-covered land tend to be extremely poor. Poor infrastructure is a significant correlate of high poverty. Indicus research on spatial data identifies low poverty rate in areas which are well connected with broad road networks and well served by other infrastructural facilities, such as educational institutions, hospitals and transport services. The frequent terror attacks in Jammu and Kashmir resulted in a huge cost burden both in terms of capital formation as well as rise in unproductive expenditure. The loss of government buildings, educational institutions and hospitals due to terrorist attacks in this decade itself has been significant. Jammu and Kashmir’s economy is predominantly dependent on agriculture and allied activities. 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. The region of Kashmir is known for its horticulture industry and is the wealthiest region in the state. Horticultural produce from the state includes apples, apricots, cherries, pears, plums, almonds and walnuts. The Doda district has deposits of high-grade sapphire. 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. However, industrial development in the state faces several major constraints including extreme mountainous landscape and power shortage. 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, totalling $ 812 million per year. The scenic beauty of the state has huge tourism potential that can be exploited profitably on an expanded scale. An evidently greater number of tourism-related locations in the low poverty zones confirm the fact that tourism can trigger overall economic expansion and lead to poverty reduction, and this is apparent from spatial analysis. Poverty rates are much lower in areas where tourism is higher. Law and order issues no doubt impact Jammu and Kashmir, but our analysis also strongly suggests that poverty is likely to be much higher in Pakistan Occupied Kashmir. We unfortunately cannot validate this. What this suggests is that despite law and order issues, if the government concentrated on the business of governance, life could be much better for the residents of Kashmir.