MSMEs: J&K’s Economic Backbone
The story of Jammu and Kashmir’s economy is inseparably tied to the fate of its micro, small, and medium enterprises (MSMEs), its artisans, and its fledgling start-up ecosystem. These enterprises form the backbone of livelihoods, accounting for a significant share of employment while shaping the socio-cultural fabric through crafts, services, and small-scale industries. Yet, despite their resilience, MSMEs remain vulnerable to structural gaps in policy, delays in institutional intervention, and the absence of tailored support systems. The result is an uneven industrial growth pattern where investment flows are impressive on paper but often fail to reach the workers, traders, and artisans whose livelihoods are most precarious.
Recent figures demonstrate a surge in investment realization, with large-scale industrial units setting up across metals, pharmaceuticals, plastics, textiles, and food processing. This is a welcome sign of confidence in the region’s potential. But industrial growth cannot be measured only in capital inflows; it must be assessed in its capacity to create sustainable employment and build human capital. Too many MSMEs continue to struggle with a lack of access to credit, delayed allotment of land, and the absence of timely institutional handholding. A distressed unit, if revived in time with minimal support, can become a powerful engine of jobs and stability. If neglected, it collapses, taking with it not only capital but also the confidence of workers and communities dependent on it. The region’s start-up ecosystem presents a brighter picture, growing from negligible numbers a few years ago to over a thousand registered ventures today. This reflects the ingenuity of youth and the potential of technology and service-led enterprises in peripheral economies. Yet, start-ups too require enabling conditions, ease of doing business that goes beyond national benchmarks, policies that differentiate J&K’s advantages from neighbouring states, and access to mentorship and finance. Without such scaffolding, the burst of energy may not mature into long-term sustainability. Infrastructure, too, demands urgent attention. Industrial estates face delays in land allotment/transfers despite premiums being deposited, a situation that stalls productivity and erodes investor confidence. The announced completion of 46 new estates, alongside upgrades of existing ones, must not become another unfinished promise. In a fragile economy, infrastructure delays are more than technical hurdles; they represent lost opportunities for thousands of unemployed youth and artisans. The land question also extends to the judicious use of space, where raw material availability and local markets should guide industrial decisions. Equally critical is the need to integrate cultural heritage into industrial planning. With exports of handicrafts doubling and Srinagar now recognized as a World Crafts City, the sector has immense global potential. Yet, the lack of adequate GI certification facilities threatens to undermine credibility. The introduction of QR-based certification is innovative, but its success depends on scaling up capacity to meet demand. Protecting crafts is not merely about preserving culture; it is about ensuring sustainable livelihoods for nearly half a million artisans who remain the custodians of J&K’s identity. The broader question is whether industrial growth is inclusive enough to transform society. The contribution of MSMEs to J&K’s GDP and the employment of over 10 lakh people is testimony to their centrality. But gaps persist: slow capital expenditure, inadequate support mechanisms, and the absence of structured feedback from industries under the Single Window Clearance system all reveal how policy execution lags behind vision. Unless these gaps are closed, industrial policy will remain a lofty document rather than a driver of grassroots change.
Jammu and Kashmir’s industrial ecosystem is in transition, showing promising investment figures and rising start-up energy, but equally revealing fragilities that cannot be ignored. Balanced industrial growth demands not just big-ticket investments but also a focused revival of MSMEs, efficient land and infrastructure policies, expanded certification systems for crafts, and consistent monitoring of ease-of-doing-business reforms. Industrialization, if pursued with inclusivity and accountability, can be the pathway to socio-economic transformation. But for that to happen, the metrics of success must not end at investment inflows; they must extend to the livelihoods of artisans, the survival of small enterprises, and the confidence of the youth who look to industry not only for jobs but also for dignity and opportunity.
