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New Delhi , Dec. 25

THE Planning Commission has said that sound policy and good governance could lead Jammu & Kashmir (J&K) to a faster development path even as in the case of the growth of per capita net State domestic product at current prices, the State was lagging behind most Indian States.

In its first State development report (SDR), released here by the Planning Commission Deputy Chairman, Mr K.C. Pant, in the presence of the State Chief Minister, Mufti Mohammad Sayeed, the report said that as a State with unique features and a strategic location, the speedy development of J&K needs an integrated approach.

It said the average annual growth of the net State domestic product at current prices during 1980-81 to 1999-2000 was 12.45 per cent for J&K against 15.01 per cent, 14.28 per cent, 13.83 per cent and 14.3 per cent for Andhra Pradesh, Gujarat, West Bengal and Kerala respectively.

In the case of the growth of per capita net State domestic product at current pries also, J&K was lagging behind most Indian States.

The average annual growth of per capita net State domestic product at current prices during 1980-2000 was estimated as 9.63 per cent for J&K against 12.9 per cent, 11.63 per cent, 11.63 per cent and 12.86 per cent for Andhra Pradesh, Gujarat, West Bengal and Kerala respectively.

In his remarks, Mr Pant said that the report attempts an in-depth analysis of factual details from secondary and primary sources and suggests policy measures to propel the State economy on a sustainable growth path. Specific attention has been focused on the prime areas of the economy, with due emphasis on upcoming sectors such as information technology and biotechnology.

The report said the development of potential sectors such as horticulture, handloom and handicrafts, biotechnology, tourism and information technology will have strong inter-linkages with the rest of the sectors.

Mr Pant noted that the announcement of a comprehensive package of Rs 6,165 crore by the Prime Minister Mr Atal Bihari Vajpayee, at the end of his three-day visit on May 2002 to J&K, covering various aspects of development and security with a thrusts on generation of new employment opportunities for the youth of J&K and relief for migrants hit by militancy and cross-border shelling would enhance the employment opportunities for the youth.

According to the report, low productivity in agriculture and allied sectors has impeded employment and income generation. Poor industrial infrastructure along with poor investment climate has left industrial sector in its infant stage, the report said adding that there has not been a suitable strategy for the potential sectors to achieve higher economic growth

The report said the State has been facing serious financial problems with revenue and fiscal deficits increasing at alarming rates. The account of the State Government for 2000-01 closed with a revenue deficit of Rs 961 crore while the fiscal deficit increased to Rs 1,873 crore in 2000-01.

Revenue expenditure was the major drain on the limited financial resources of the state. The report said most of the public sector units in the State were running into losses. Hence State-owned units such as JAKFED, AIDC JKTDC, JK Cable Car and HPMC could be privatised as some of these organisations own large assets including cold storages, buildings and large tracts of lands, which could fetch good money for the Government through disinvestments

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