ECONOMY OF JAMMU & KASHMIR
Planning for Development
The outlay expenditure from the First Five Year Plan onwards is as under:
| Plan | Year | Outlay (₹ Crore) | Expenditure | Major Thrust Areas |
|---|---|---|---|---|
| 1st Plan | 1951–56 | 12.74 | 12.00 | Agriculture |
| 2nd Plan | 1956–61 | 33.92 | 26.82 | Industry |
| 3rd Plan | 1961–66 | 75.00 | 61.24 | Agriculture |
| Inter Plan Period | 1966–69 | 60.99 | 59.28 | — |
| 4th Plan | 1969–74 | 158.40 | 162.22 | Agriculture |
| 5th Plan | 1974–79 | 362.64 | 376.05 | Poverty alleviation |
| Annual Plan | 1979–80 | 118.00 | 123.55 | — |
| 6th Plan | 1980–85 | 900.00 | 919.37 | Multifaceted |
| 7th Plan | 1985–90 | 1400.00 | 2006.23 | Employment |
| Annual Plan | 1990–91 | 665.00 | 556.62 | Multifaceted |
| Annual Plan | 1991–92 | 723.00 | 649.02 | Multifaceted |
| 8th Plan | 1992–97 | 4000.00 | 4520.00 | Multifaceted |
| 9th Plan | 1997–02 | 10,000.00 | 7542.87 | Multifaceted |
| 10th Plan | 2002–07 | 14,500.00 | 8597.07 | Multifaceted |
Eleventh Plan
The aggregate size of the Eleventh Plan proposed by the State Government is ₹37,829 crore as compared to ₹14,500 crore of Ninth Plan at current prices. This excludes Prime Minister's Reconstruction Plan (PMRP), National Flagship Programme and other central sector schemes.
Kashmir's Economy
Kashmir's economy is centered around agriculture. Traditionally, the staple crop of the valley is rice, which forms the chief food of the people. Indian corn comes next; wheat, barley and oats are also grown.
Blessed with a temperate climate unlike much of the subcontinent, it is suited to crops like asparagus, artichoke, seakale, broad beans, scarlet runners, beetroot, cauliflower and cabbage.
Fruit trees are common in the valley, and the cultivated orchards yield pears, apples, peaches, cherries, etc. The chief trees are deodar, firs and pines, chinar or plane maple, birch and walnut. Kashmir wool is of fine quality.
Historically, Kashmir came into the economic limelight when the world-famous Kashmiri wool was exported to other regions and nations. Exports have ceased due to decreased abundance of the Kashmir goat and increased competition from China. Kashmiris are well adept at knitting and making shawls, silk carpets, rugs, kurtas and pottery. Kashmir is home to the finest saffron in the world.
AGRICULTURE
Agriculture, the predominant sector of the economy of Jammu and Kashmir, supports about 75 percent of its population. The state is divided into three agro-climatic zones: Jammu, Kashmir and Ladakh, each having its own specific geo-climatic condition, which determines the cropping pattern and productivity.
Rice is the chief crop of Kashmir zone, followed by maize, barley and wheat. Jammu region dominates both in maize and wheat production. In the Ladakh region, barley is the major cereal crop followed by wheat.
The production of three important food crops, namely, rice, maize and wheat, contributes a major portion of the food grain in the state and accounts for 84 percent of the total cropped area; the balance 16 percent is shared by inferior cereals and pulses.
Nearly 75 percent of the country's temperate fruits, mainly apples, are grown in the state.
Important Points
- Agriculture and livestock sector contributes 17% to the GSDP of the state economy.
- Livestock and its derived food and other products contribute about 6.13% to GSDP.
- About 70% of J&K population, directly or indirectly, derives livelihood from agriculture.
- The performance of agriculture influences the overall growth of the economy.
- Agriculture provides food, fodder and raw materials, especially to industries.
- The prosperity of the rural economy is closely linked with agriculture and allied activities.
- The rural sector is increasingly seen as a potential source of domestic demand.
Agricultural Area
- Net area sown during 2010–11 was 732 thousand hectares.
- Gross area sown was 1140 thousand hectares.
- Only 479 thousand hectares (42%) was irrigated during 2010–11.
- About 94% of operational holders fall in the marginal and small farmer category.
- About 5% fall in the semi-medium category.
- Only 1% fall in the medium category.
- Only 0.04% fall in the large category.
- About 92% of the net area irrigated is irrigated through canals.
- Jammu: 61.71% of gross area irrigated.
- Anantnag: 73.43%.
- Kathua: 31.12%.
HORTICULTURE
About 29 percent of the total cultivated area is under horticulture crops. About 6 lakh families are engaged, directly or indirectly, in horticulture activities. The area under fruit cultivation is about 3.35 lakh hectares.
Horticulture constitutes a critical area of the state's economy, contributing about ₹3,500 crores to the state's domestic product, including about ₹500 crore from dry fruits.
Sopore is the main fruit-producing district in the Valley and accounts for about 50 percent of total fruit production.
Apple
Apple occupies a predominant position amongst horticulture crops, constituting 45 percent of the total area under tree crops. Varieties such as Ambri and Maharaji are famous for their distinct flavour.
Walnut
Walnut is the next important item, covering nearly 18,000 hectares of land. The state has almost a monopoly in growing dry fruits like walnuts.
The project for transfer of technology on vegetative propagation of walnuts with the help of the Food and Agriculture Organization (FAO) is under implementation.
Saffron
Saffron cultivation is unique to Jammu and Kashmir State, the only other country producing the flower crop being Spain. Annual production of saffron is confined to Pampore in Kashmir Valley and Kishtwar valley of Jammu province.
Important Horticulture Facts
- Almost 45% economic returns in the agriculture sector are accounted for by horticulture produce.
- 6 lakh families comprising 30 lakh people are directly or indirectly involved in horticulture trade.
- The state is a major producer of apple, walnut and almond.
- During 2011–12, estimated area under fruit was 3.35 lakh hectares.
- Fruit production was estimated at 21.61 lakh metric tons.
- Fresh fruit production: 19.24 lakh MT.
- Dry fruit production: 2.37 lakh MT.
- Apple's share in area: 44.10%.
- Apple's share in production: 81.26%.
- Walnut production was recorded at 208.74 lakh metric tons in the figures given in the text.
SAFFRON
Saffron produced in Pulwama and Budgam districts of Kashmir Valley is an agricultural product of international quality.
The Government of India launched the National Mission for Saffron Development in J&K for a period of four years from 2011–12.
- Total saffron production during 2010–11: 79.921 quintals.
- Kashmir Division: 76.53 quintals.
- Jammu Division: 3.39 quintals.
Apricot
Apricot, the famous fruit of Ladakh, is increasing year by year. Production increased by around 5% and area increased by 2% during 2010–11.
Horticulture and Foreign Exchange
- During 2010–11, the state exported 9515.55 metric tons of dry fruit.
- Foreign exchange earned: ₹208.49 crore.
- Fruit exported outside the state during 2010–11: 10.87 lakh metric tons.
- This represented 48.92% of total fruit production.
- It recorded 16.38% growth over 2009–10.
- About ₹3500 crore was generated as income from fruit production.
FLORICULTURE
Floriculture has been identified as the most focused segment of horticulture. There is scope for more income to farmers from flower cultivation due to growing demand for flowers in domestic and foreign markets.
The Directorate of Floriculture produces more than 40 lakh seedlings of different kinds of flowers and ornamental plants.
Tulip Garden
One of the landmark achievements of the Floriculture Department has been the establishment of Tulip Garden at Siraj Bagh, Srinagar.
Situated on the foothills of the Zabarwan Mountains, the garden has the distinction of being Asia's largest Tulip Garden.
The garden remains in full bloom for one month, from the last week of March to the last week of April.
- Nearly 80,000 tourists visited the garden during the 2011 bloom period.
- About 90–95% were tourists from outside the state.
- Bagh-e-Bahu in Jammu generates revenue of about ₹40 lakh annually.
APICULTURE
Apiculture is also known as bee-keeping. In bee-keeping, bee colonies are maintained for commercial production of honey and other bee products.
The Valley of Kashmir is well known for its great diversity of flowers ranging from lily to saffron. Most flowers depend upon bees for carrying pollen from the anthers to the stigma.
Bee-keeping has been developed in Pampore, Srinagar, Pulwama, Tral, Budgam, Qazigund and Karnah.
In Jammu Division, bee-keeping has been developed in Jammu, Udhampur, Poonch, Kishtwar, Bhaderwah, Batote, Banihal and parts of Kathua district.
₹800 per hive/colony is provided for promotion of apiculture development as an incentive.
LIVESTOCK
Livestock is another fast-growing sector making significant contribution to the economy. The livestock sector engages a sizeable workforce in rearing animals, processing, transportation and sale of animal products.
Livestock Population
- Total estimated livestock population: 151.064 lakhs.
- Cattle: 30.875 lakhs.
- Sheep: 37.573 lakhs.
- Buffalo: 7.504 lakhs.
- Goat: 15.370 lakhs.
- Fowls: 54.576 lakhs.
- Duck: 5.166 lakhs.
Regional Distribution
- Jammu region: 48.18%.
- Kashmir region: 47.44%.
- Ladakh region: 4.37%.
Milk Production
- Milk production in 2009–10: 15.92 lakh metric tons.
- Per capita milk availability: 378 grams/day.
- Day Old Chicks produced during 2010–11: 6.177 lakh.
- Egg production during 2009–10: 7247 lakh eggs.
- Per capita egg availability: 58 eggs per annum.
FOREST
- Forests maintain ecological balance, improve soil fertility, minimize soil erosion, purify air and regulate water flow.
- Forests are sources of timber, fuel, fodder, medicines and other minor forest products.
- Per capita forest area: 0.17 hectares, compared to 0.07 hectares in the country.
- J&K forest cover: 20,230 sq. km.
- Forest cover accounts for 19.95% of geographical area.
- Reserved forest: 2551 sq. km.
- Protected forest: 17643 sq. km.
- Unclassified forest: 36 sq. km.
- Out-turn of timber in 2010–11: 89.93 thousand cubic metres.
- Firewood included: 20.23 thousand cubic metres.
- Timber out-turn during 2011–12: 30.92 thousand cubic metres.
- Timber imported during 2011–12: 28.18 lakh CFTs.
- Revenue receipts during 2011–12: ₹2375.69 lakh.
PISCICULTURE (FISH FARMING)
- Fish production is increasing year by year.
- Fishery sector contributes about 0.5% to the GDP of J&K.
- The department has achieved major success in trout culture.
- Trout seed production during 2010–11 increased to 50 lakh ova.
- Target during 2011–12: 60 lakh ova.
- State has developed 19 fish farms.
- 37 trout hatcheries.
- 27 farm huts.
- 150 trout beats.
- 2 aquariums/awareness centres.
INDUSTRIAL FACE OF STATE
Jammu and Kashmir Small Scale Industries Development Corporation Ltd. was started in 1975. Its main objective was to aid, counsel, assist, finance, promote and protect the interests of small-scale industries in the state.
INFRASTRUCTURAL
- J&K has 52 existing Industrial Estates.
- These are spread over 31,845 kanals.
- 7,833 kanals of land is being acquired for 10 new industrial estates.
- 177 large and medium-scale industrial units have been set up.
- Total investment mobilisation: ₹5430 crore.
- Total persons engaged: 38,870.
- Chenab Textile Mill, Kathua employs around 8,000 workers.
The department focuses on food processing, pharmaceuticals, biotechnology, textiles and sports goods.
- Functional industrial units as per 3rd All India Census Report, 2001: 15,253.
- Employment generated: 50,643 persons.
- Registered Small Scale Units: about 24,000.
- Employment opportunities: about 100,000 persons.
- Average workers per SSI: 4 persons.
- Annual turnover: ₹2062.27 crore.
- Investment: ₹937.56 crore.
INDUSTRIAL COMPLEXES
Industrial complexes have been established at Rangreth, Khunmoh, Doabgah and Bari Brahmana.
The Rangreth factory assembles television sets, radio transistors, electronic decks, stabilizers and electric blankets.
Khunmoh manufactures joinery articles, matches, automobile batteries and tiles.
Bari Brahmana is an important industrial complex of Jammu, producing textiles, chemicals, drugs, transport goods, detergents, resin products, vanaspati, steel rolling products, scooters and pottery.
IMPORTANT INDUSTRIAL AREAS
- Industrial Complex, Bari Brahmana, Jammu
- Industrial Estate, Gangyal, Jammu
- Industrial Growth Centre, Samba, Jammu
- Integrated Infrastructure Development Project, Udhampur
- Export Promotion Industrial Park, Kartholi, Jammu
- Industrial Area, Kathua
- Electronic Complex, Rangreth, Srinagar
- Industrial Complex Lassipora, Pulwama, Kashmir
- Industrial Complex, Khanmoh, Srinagar
- Industrial Complex, Zainakote, Srinagar
- Industrial Estate, Zakura, Srinagar
- Industrial Growth Centre, Ompora, Badgam
PUBLIC SECTOR UNDERTAKINGS (PSUs)
J&K Minerals Ltd was the first state-owned enterprise, set up in 1960, with the objective of exploiting mineral resources and establishing mineral-based industries in the state.
J&K Industries Limited (JKI) was incorporated in 1963.
PSUs in the State
- J&K Handicrafts (S and E) Corporation Ltd
- J&K Minerals Ltd
- J&K Handloom, Handicrafts, Raw Material Supplies Organization
- J&K Himalayan Wool Combers Ltd
- J&K State Industrial Development Corporation Ltd
- J&K Cements Ltd
- J&K Handloom Development Corporation Ltd
- J&K Small Scale Industries Development Corporation Ltd
- J&K Industries Ltd
- J&K Woollen Development Corporation Ltd
- J&K Scheduled Castes, Scheduled Tribes and Other Backward Classes Development Corporation
- J&K Tourism Development Corporation Ltd
- J&K Cable Car Corporation Ltd
- J&K Forest Corporation Ltd
- J&K State Financial Corporation Ltd
- J&K Horticulture Production, Marketing and Processing Corporation Ltd
- J&K State Road Transport Corporation Ltd
- J&K Project Construction Corporation Ltd
- J&K Agro Industries Development Corporation Ltd
- J&K Power Development Corporation Ltd
SERICULTURE (SILK INDUSTRY)
Sericulture, the art of silk production, is the traditional occupation for a large section of the population in Jammu & Kashmir.
- Provides subsidiary employment to about 27,000 rural families.
- About 900 metric tons of cocoons are produced annually.
- Income generated: about ₹1100 lakh.
- J&K has enormous potential for producing Bivoltine silk of international grade.
- Average price of 'A' grade silkworm cocoon increased from ₹192/kg to ₹410/kg.
- Cocoon production during 2011–12: 917 MT.
- Raw silk production was expected to touch 115 MT.
- There are 173 Mulberry Nurseries and Mulberry blocks.
- About 60% of local annual seed demand is met from within.
HANDICRAFT
- Handicraft sector occupies an important position in the economic structure of the state.
- It has worldwide acclaim for high-quality craftsmanship, attractive designs and functional utility.
- It engages about 3.74 lakh artisans.
- The state is a major exporter of superior-quality carpets, wooden art, embroidered clothes and other crafts.
- Production of handicraft goods during 2010–11: ₹1650 crore.
- Carpet share in exports: 41.08%.
- Woollen shawls share: 30.08%.
- Production increased from ₹821.53 crore in 2003–04 to ₹1650.30 crore in 2010–11.
- Annual average growth: 14%.
- Export sales during 2010–11: ₹1004 crore.
HANDLOOM
The centuries-old tradition of weaving by hand is one of the richest and most vibrant aspects of the cultural heritage of the state.
J&K is famous for specialized fabrics such as Pashmina shawls, Raffal shawls, Kani shawls, silk sarees, Kishtwari blankets, Lois, Chashme Bul Bul blankets, cotton check bed sheets, long cloth, block-printed bed sheets and Masnads of Samba.
- 647 handloom units provide employment to 2334 persons.
- Products include Lois, Puttos, Tweed, Blankets, Raffal, Pashmina and Dusoti Khad.
- 491 registered Handloom Industrial Co-operative Societies.
- Membership: approximately 15,495 weavers.
- Approximately 37,000 handlooms in the state.
- During 2010–11, 12.57 million metres of handloom fabrics valued at ₹285.34 crore were produced.
- Production during 2011–12: 12.42 million metres, valued at ₹281.85 crore.
KHADI AND VILLAGE INDUSTRIES
The J&K Khadi and Village Industries Board plays a vital role in generating employment in rural areas by providing financial and technical assistance to unemployed youth and artisans of the state.
It assists in setting up Micro and Small Units in industrial and service sectors under various schemes launched by the Khadi and Village Industries Commission, Ministry of Micro, Small and Medium Enterprises, Government of India.
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