Opinion J&K is on the cusp of a transformation. Green shoots of private-sector interest must be nurtured

The first one is clearly tourism. The rapidly expanding rail and road network will bring increasing numbers of tourists. The extension of the railways has already made hitherto poorly connected areas like Gool, Sangaldan and Khari eminently accessible. The engineering marvel of the highest rail bridge on the Chenab near Sangaldan is a tourist destination in itself. While hidden gems like Bani, Dudu Basantgarh, Gurez and Bangus are becoming more accessible due to an expanding road network, traditional favourites like Gulmarg and Pahalgam are witnessing increasing footfalls.

To reap the benefits of increased connectivity and larger inflows, J&K will have to reimagine its tourism strategy. This will require better carrying capacity and more infrastructure — more hotel rooms, improved urban services like sanitation and sewage treatment, better internal road networks, expanded public transport and tighter regulation. But beyond the basics, J&K will require a more creative strategy designed to offer more exclusive tourist experiences. A rethinking via convergence with diverse sectors such as sports, fashion, cuisine, crafts, wellness and healthcare is needed. Weddings, golf circuits, health resorts, handicraft centres and even education can be imaginatively blended to create high-value tourism. A well-crafted tourism strategy will not only absorb the increased tourist arrivals but also promote unique luxury experiences by leveraging J&K’s natural strengths such as stunning locales and pristine landscapes. This in turn will ensure increased revenues. Thoughtful policies on ecological conservation and carrying-capacity assessments must, however, accompany any expansion efforts. Unregulated expansion would ultimately harm the very industry it seeks to promote.

Another low-hanging fruit is horticulture. However, yields per hectare in crops like apple — the mainstay of this sector —- are currently low. One estimate puts the current yields at less than an eighth of those in Italy and New Zealand. While efforts at intensive orcharding and promotion of high-yielding varieties are already on, an equally critical component would be to add value to the crop rather than ship it to the rest of the country, as is largely being done today. With better connectivity removing bottlenecks, investments in post-harvest and cold chain infrastructure and processing parks can help the region capture greater value from its produce. With global demand for organic and speciality foods rising, emphasis on high-value crops such as saffron, walnuts and exotic berries can help J&K’s horticulture sector increase its current Rs 10,000 crore size manifold.

At 9.5 per cent, J&K’s growth rate is promising. However, it has so far been largely driven by public investment and government expenditure. The overwhelming response to the 2021 New Industrial Development Scheme for J&K provides the possibility of strongly supplementing this with private investment-led growth. The recently concluded cement deal underlines the magnetic role that local entrepreneurs can play in this. With Indian GCCs (Global Capability Centres) being the global toast and their movement to Tier 2 and Tier 3 cities being planned, J&K can make a credible bid for this expanding pie as well. However, given the frenetic competition for investment among various states, the green shoots of private sector interest in J&K need to be carefully nurtured. Current investors, especially local people, would need to be actively encouraged to help expand their existing businesses and invest in newer ones.

All this would require a strong facilitative regime, particularly in terms of availability of land, provisioning of infrastructure and utilities, facilitating access to capital and skill development initiatives. As a late entrant to this race, J&K needs vast improvements in governance capacities and faster response times. J&K is today at the cusp of a major transformation. A virtuous cycle of developments— from targeted public investment, strong infrastructure growth, committed central support and increasing private investor confidence — bodes well for its future.

Kansal is a senior IAS officer of the former J&K cadre; Sengupta is professor of economics at the University of Jammu. The views expressed by authors are personal