The Hindu Business Line : PHDCCI study moots investment strategy in J&K

A FOCUSSED approach and flexible strategies are required to be put in place by the State Government to attract private investments, while a socio-economic cost benefit analysis is needed for investing or promoting new ventures in Jammu and Kashmir, says a PHD Chamber of Commerce and Industry (PHDCCI) study.

According to the chamber, separate strategies have to be adopted to promote industries in J&K keeping in mind the climate, accessibility, raw material availability, human resources and consumption pattern.

The Government should make an effort to promote high value, low-volume items, the service sector and IT-enabled services in the Kashmir Valley.

In Jammu, the advantage of rail connections should be explored by introducing industries that handle bulk materials.

The study maintains that even as small and medium-scale industries (SMEs) have come up mainly in the traditional sectors besides some new areas of activity such as food processing, agro-based units and metallic and non-metallic products in the recent years, yet geographical constraints and environmental consequences have constrained the State from being able to attract large industries with a large capital base.

The study, however, is appreciative of the Government's support to SMEs in the form of loans and incentives to set up industrial units.

The number of SMEs, in fact, has increased from 35,642 in 1995 to 42,808 in March 2001.

At the same time, employment has increased by over 20 per cent from March 1995 to March 2001.

The study has thus called for creation of a monitoring mechanism to check the performance of SMEs, which could help to detect the early signs of a unit becoming sick.

To encourage investments in the State, the Government should instil confidence in private investors.

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