Investment, Industrial Growth and Conflict in Kashmir: An Analysis

Abstract

For a predominantly agrarian economy like ours, development of industries is highly essential in view of the fact that the primary sector in the state which is constrained with low man-land ratio and other structural limitations cannot take the state to high growth path. The state does not enjoy wide variety of mineral resources but is well endowed with some proven natural resources like, lime-stone, gypsum, coal, lignite, quartzite, while clay, Borax etc. The state is also rich in forest wealth and in some industrially important agriculture and horticulture products. Due to temperate climatic conditions, Kashmir is the only place in the Indian union highly suitable for rearing Univoltine and Bio-voltine silkworm races, which are famous for high quality silk. The definite comparative advantage in these and other natural resource endowments certainly provide sufficient scope for industrialization in the lines based on these resources. The state is also gifted with scenic beauty, world famous health resorts, fascinating landscape and historical legacies in craftsmanship skills, thus enjoying a distinct and an important place in handicrafts and tourism industry. For sustainable development in the industrial sector, there is an equal need for peace and stability but unfortunate the state has remained politically most unstable right from the beginning. It is a bone of contention between India & Pakistan and the two countries have fought three wars over the state right from 1947. As a result of the lack of peace and stability, the state has suffered on all fronts including the industrial front. The present paper is a modest attempt to find out the impact of political conflict in the state on investments & industrial development. On the basis of facts and figures it is being found that the lack of lasting peace and stability in the state is the most important factor responsible for the under development of the state’s industrial economy.