Dr Nazir Ahmad Gilkar
The issue of growth and employment in Jammu and Kashmir was discussed by a panel of experts at ISLE-57th Conference. The proceedings started with greetings to the panel of experts and learned audience by Prof. GM Bhat. J&K economy is the least researched in India. The state (noncommunist) first launched land reforms in 1948-1953 that are appreciated across the globe. West Bengal and Kerala (communist states) pursued the suit after some time. With these remarks the proceedings of the panel discussion titled Growth and Employment in Jammu and Kashmir chaired by Finance Minister Dr Haseeb A Drabu started. Developmental economists, industrial entrepreneurs, financial experts, agricultural scientists, academic economists were included in the panel.
Jammu and Kashmir basically is an agricultural economy with amusing saffron production, best fruits and horticulture produce, world famous Pashmina unparalleled in artistic attainment, export of handicrafts, attraction for global tourists etc. Though it is quality-wise rich economy yet sans quantity. The J&K economy at the dawn of independence was at an advantage being rich in entrepreneurial resources with export orientation. Consequently, people were not after government jobs because of degrading labor and exploitation and deprivation, artisans opted out and looked for wage employment. With the passage of time, it has turned to be a consumption state, however, the economy is lagging behind and every economic activity is subcontracted.
With the opening of LoC trade (Srinagar-Muzaffarabad /Poonch Rawlakot) lead growth aspirations of business community were high and intra trade was expected to gain a flip. The experiment was made based on experiences of Ireland and Sudan, confronted with conflict. The LoC trade was expected to boost socio-economic status by generating income to transporters, traders, small shopkeepers etc. More land was brought under cultivation in order to increase agricultural produce for sale. Schools/health centers closed earlier across LoC were reopened. The entire trade is based on barter system and not currency in view of multidimensional overtones. In fact Jammu and Kashmir Bank had two branches till 1965 on the other side of LoC. For all practical purposes LoC trade is domestic to perform an agent of Confidence-Building Measures (CBM).
Jammu and Kashmir is currently confronted with increasing unemployment and the educated youth is not interested in subsistence farming. Small land holding is a contributing factor of low agricultural productivity. Saffron cultivation is very small in the economy. Cultivation of food grains loosing comparative advantage as land is not gold mine. Bank finance in agriculture has been very minimal. Opening enterprises in medicinal plants is not a viable venture. J&K is facing problem of growth in all the three sectors of economy. Land reforms worked good for first five years. The state has a geographical disadvantage being land locked as well. Slowdown of growth is attributable to a variety of factors including turmoil the state has confronted with. No comprehensive socio-economic survey has been conducted until now to guide in policy implementation. J&K economy cannot afford to be isolated and what is happening across the globe has an impact on this economy as well.
J&K state has only one listed company that is J&K Bank. The scale of SMEs operating at present, if augmented would create job opportunities at least two workers per enterprise thus provide employment to around one lakh educated youth. To earn demographic dividend contributing to SGDP through “Make in India” it is essential to be associated with new architecture of Jobs Enterprises Technology Skills (JETS) ecosystem. There were interventions, by the learned audience present after the panelists subscribed to the debate and discussion. To ensure growth in the state economy and employment generation, some strategies need be adopted: Building human resource is a developmental strategy. There is skill set deficit; thus, this is not a problem of unemployment but employability. Accordingly, curriculum management at all levels needs a quick relook; blending craft skill development with cognitive content of syllabus right at higher secondary level. Artisans’ potential is to be harnessed by way of adequate wages to their artistic work. Dignity of labor is necessarily to be maintained. Through craft-centered education socio-economic revolution is possible to bring about; facilitating local entrepreneurs as regards working capital finances by the banks operating in the state. C-D ratio and priority sector lending to be improved further. Under new state industrial policy being in preparation some performance based incentives also be incorporated; ensuring full usage of land for agricultural purposes alone to improve upon the food grain production. Non adherence to the provisions of the relevant legislation under land reforms to be dealt with under law; bridging gaps in LoC trade on account of communication network, financial mechanism and dispute redresses to boost this trade by making operations easier; switching over to cash and high value crops. Value for money (VFM) needs more capital initiatives and quick payback with gestation period of 7-8 years; encouraging people to go outside the state with a view to return equipped with new technologies enabling to think incrementally in the areas of agriculture, tourism (effective utilization of infrastructure), horticulture, handicrafts, small and medium enterprises and other sectors of the state economy leading to all inclusive and robust growth with high impact on employment. Furthermore, free economic zones have a positive stake in the growth of the state economy; focusing on public investment lead growth rather than public expenditure lead growth. 360 degree appraisal of output in all sectors of the economy needs to be made to realize true value in the international market; ensuring process value addition by way of optimal utilization of installed capacity and zero defect processes in SMEs in every sector of the economy. The processes are required to be cost effective to result in adequate return on investment and proper share to all the stakeholders contributing toward value addition; avoiding subcontracting and luring local youth to actively participate in economic activities contributing to SGDP leading to growth and employment.
The author can be mailed at gilkarna@rediffmail.com
