The bulwark of Modi-Shah combine's move to scrap Article 370 hinges on the trade and business opportunities it could set off in Jammu and Kashmir that could help get the troubled region back on its feet.
Moves are already afoot. Confederation of Indian Industry (CII) is working with the J&K government to organise an investor summit in the state in October. Many top honchos are expected to participate in the summit, with the government putting its full weight behind the crucial conference.
Another industry body, ASSOCHAM, announced on Tuesday evening that it will set up a regional office in J&K soon.
“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. “Strong efforts from the government and industry, including local businesses, are the need of the hour to raise its growth rate and create new opportunities for employment and livelihoods,” he added.
CII has also come out with a 'J&K Report' on Opportunities in Key Sectors, detailing the potential of areas like food processing, pharmaceuticals, IT/ITeS, electronics and leather. It particularly points out the lacunae in the state when it comes to post-harvest food processing, as well as the acute lack of health care and educational facilities in the state mainly due to lack of private sector participation.
“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,” pointed out ASSOCHAM president B.K.Goenka. “The multiplier impact would increase the employment opportunities and contribute to India's all-round prosperity.”
“Article 370 ruined Jammu and Kashmir, stalled its development, prevented proper health care and education, and blocked industries,” Home Minister Amit Shah had argued in parliament on Monday. He added, “No industry (could be) set up because of Article 370, 35A… tourism did not develop because of restrictions on land purchase and land price in the state did not rise”.
The two Articles limited ownership of property in J&K as well as government jobs only to locals. This limited business investments, as well as trained professionals, from coming into the state. Till the early 1990s, tourism and entertainment helped the state economy bide by, but once insurgency flared up, these sectors collapsed, leaving Kashmir to fend on government doles as well as meagre revenues from its traditional industries like agro-farming and handicrafts. “With Article 370 revoked, I expect investments to return,” tweeted prominent industrialist and RPG Enterprises chairman Harsh Goenka, who himself owned two factories in the Valley which had to be shut down after the dawn of militancy in the Valley.
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.
Real estate prices in the Valley are also among the most under-valued in the country, as demand was low since only locals could own land. With that limitation gone, money could flow into properties, and to set up new businesses, in the state soon. No surprise that one of the first off the block, in lauding the dramatic change, was none other than industrialist Gautam Adani. “Truly historic if it opens the gateway for development and peace in Jammu and Kashmir,” he said in a tweet.