Kashmir, the economy looks up
Militancy in Jammu and Kashmir may have severely damaged the economic structure of the state but has not been able to decimate it.
By PTI |
SRINAGAR: Militancy in Jammu and Kashmir may have severely damaged the economic structure of the state but has not been able to decimate it.
While the state remains dependent on the central grants, parts of the economy have not just survived but thrived.
The production and sales of handicrafts and agro-products ensured that the state maintained its economic activity.
The state's infrastructure lies in ruins, more money is being spent on government personnel than on development, there has been flight of capital from medium and large units, small scale sector is plagued by sickness but in the midst of this scenario, exports from the state rose from Rs 150 crores in 1989-90 (when the militancy spread its tentacles), to Rs 1,150 crores in 2005-06. It is likely to exceed Rs 1,500 crores in the current fiscal.
In economic terms the buoyancy in the handicrafts, fruits, horticulture and agro-products, especially carpets, seems to have offset the losses in tourist trade.
This has also removed the myth that tourism is the backbone of state's economy as the tourism in the valley suffered because of militancy.
In the initial couple of years after the militancy set in, the sales of handicrafts plummeted as there were no tourists in the state to buy the products. The traders then spread out and set up a network of shops in the country to sell their wares, experts say.
This was supplemented by the efforts of the government which organized special exhibitions in the cities like Delhi, Udaipur, Chandigarh, Bangalore and Ahmedabad to provide sales outlets to the producers.
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