Jammu and Kashmir (J&K) Start-up Policy, 2018 has its focus on some sectors for promoting the start-ups. But let us find out which sectors is the J&K government focussing for promoting the start-ups now:

List of Sectors

Agriculture

J&K is depended on Agriculture that includes its strong Horticulture and lively floriculture Sector. The key focus is to promote the local produce to take it to the global market. Government’s continuous efforts to increase the resources and connectivity to the market to make the horticulture sector strong with advanced technologies shall add to the welfare of farmers and increase their income. Recently, the Horticulture Department organised a ‘Horti-Expo 2021’ in February 2021 in the valley. The expo aimed to make the farmers aware of the new technologies of farming adopted by other states. The invitation was extended to Uttar Pradesh, Bihar, Punjab, and Himachal Pradesh to participate and present their stalls to create a platform to learn the best practises other states are following for good crops in India.
The government declared to increase the budget share for the agriculture sector in the future because of an exceptional/unique sustainable agriculture plan developed in J&K, that caters to all the developmental needs. With the help of ‘Krishi Vigyan Kendra’, the government aims to bridge the gap between farmers and the scientific methods and Technology.

Handicrafts and Handloom

J&K is the most prominent location for handloom and handicraft products like Paper Mache, Shawls, Carpets, Finest Silk, embroidery, chain stitches, willow wicker and Pashmina Wool. In a step to promote rural economy and boost the sales, the government signed a pact in October 2020 with the online retailer Flipkart to show case and facilitate the local artisans, weavers, and craftsmen for its global reach. The government aims to boost handicrafts by shortlisting the social media agencies to aid artisans for marketing and publicity of the products. A 14 days’ handicraft and handloom exhibition were organised during the Tulip show in Srinagar and an awareness camp on government schemes for handlooms weavers was organised in the first week of April 2021.

Renewable energy

A first of its kind project to produce electricity is expected to begin in J&K soon. It will be India’s first solar ‘agro-photovoltaic’ power project where a solar project will be set up on 100 hectares and shall also be used to cultivate saffron. The project is expected to start in Pampore with the expected project cost of around Rs 50 crore.

Food Processing

J&K is the largest producers of apples, walnuts, and cherry in India along with Saffron which is one of the most expensive spices in the world. A 10-day long training programme ‘One district One Product’ covering various stages in food processing was concluded around mid-April 2021.

Curfew, Internet Shutdown or 2G Internet Services are not new to Jammu and Kashmir (J&K). Natives in the Union Territory (UT) especially, Kashmir region have lived through this for years. But this time the lockdown imposed in the 11 districts of J&K is to contain the further spread of Covid-19 with an exemption to essential services for 84 hours which is effective from 7:00 pm on April 29, 2021 till 7:00 am on May 3, 2021. The lockdown is to break the chain of transmission and stop the intermingling of people to control the intense impact of the second wave of ‘Corona’ as people in some regions have not been following the norms strictly. Jammu and Srinagar being the Capital cities and among the busiest cities, have a frequent movement from various regions and, Srinagar is currently one of the most affected districts due to Covid.

The Lockdown in 11 districts means chaining the movement in urban cities. However, it will have its own impact on the businesses in the regions.

Let us know what are these districts and the impact in the following section:

Jammu Division – Jammu, Kathua, Reasi and Udhampur

Kashmir Division – Srinagar, Budgam, Anantnag, Baramulla, Ganderbal, Kulgam and Pulwama

Business Impact of lockdown in 11 districts

Some who may succeed in Lockdown

Under the Disaster Management Services, administration in each district issued a notification categorising the essential activities to be carried on as that shall be exempted in the lockdown. This means businesses that deal with the below listed activities shall have ‘business as usual.’

Supply of groceries (wholesalers and retailers) with specific time slot/schedule in some of the districts, fresh fruits and vegetables (mandies and retailers), domestic and commercial LPG and supply of cattle feed and fodder within specific time slots.

Loading and unloading of wheat and rice at FCI and state food depots, milk shops, dairies and related products.

Health services, medicines and other pharmaceuticals (retailers, wholesalers and manufacturing of health and medical equipment).

Telecom operators and their designated agencies, banks and ATMs, newspapers and post offices, dispensing of petrol/diesel at pumps, provision of electricity, water supply, municipal and sanitary services (including the movement of staff thereof).

Transportation of essential commodities through national and state highways (petrol, diesel, kerosene, milk, vegetables, fruits, groceries, FCI supplies etc.) but testing at borders may be required in interstate travels.

Some districts have laid down further detailed notifications including some other services as essential and permissible. For instance, e-commerce and home delivery of essential goods under the essential services shall be available in Jammu district and all industrial and scientific establishments will be permissible in Jammu and Baramulla district. Also, restaurants in hotels shall serve the in-house guests in some districts. To know more, you may go through the Covid-19 guidelines available on each of these district’s websites.

It is a hard-fact that Internet services in Jammu and Kashmir (J&K) work intermittently due to the obvious unfavourable conditions caused as a result of anti-social activities. After all, national security comes first. So, does this mean it will stop the technology growth of local start-ups in the state? Definitely not.

Turning dreams into reality – A ‘Start-up’ thought

People have not stopped dreaming to provide solutions to society either by the use of technology or without it. They are bringing in their ideas and turning them into a reality, a venture. Start-up India initiative certainly supports the dream of ‘Atmanirbhar Bharat’ so do the young energetic minds by looking for an alternative to poor internet services. Something which is difficult but not impossible.

With the availability of broadband services, the projects can still be carried out. However, in the era where mobile usage brings most of the business, the growth of a start-up can slightly be delayed. People in the state may feel they are missing out on opportunities due to the 2G mobile internet services whereas 5G technology is used worldwide. 2G internet services or internet services shut down absolutely seems unbearable. However, the usage of broadband services was still a relief in areas like Jammu. For entrepreneurs, it impacts the clientele. Thus, entrepreneurs may have to look for alternate options for reaching out to customers.

J&K Start-up Policy, Start-ups and Internet

The J&K start-up policy 2018 covers the two Union Territories, Jammu and Kashmir as well as Ladakh. Despite the benefits as per the policy, getting funding from investors can be a big issue due to its volatile environment. Investors for new start-ups is a challenge as compared to established small businesses due to their track record. Thus, new innovators and inexperienced entrepreneurs are at loss. In fact, inside investments in J&K and Ladakh have been low.

Abrogation of Article 370 led to the formation of the state into two Union Territories i.e. Jammu and Kashmir, and Ladakh. And as a preventive measure, the government imposed curfew in the region and shut down the internet services with access to broadband services only in Jammu. In Kashmir, both services were completely shut down till January 2020.

Despite all odds, some start-ups are still running and providing employment to locals (start-ups manufacturing Pashmina and retailing Kashmiri products, organising tours and providing online food delivery). Some of the known examples are Parsa’s, Jos&Fine, Kashmir Box, Go Kash Adventures,  Fastbeetle, ElanMart, efruitmandi, TravelersDost, etc.

Innovation is one of the Key ‘Mantras’ to achieve the goal of ‘Atmanirbhar Bharat’ as envisioned by Prime Minister Narendra Modi. The innovation field, in all the states, is gearing up and various policies, including start-up policy, have been adopted by different states under the guidance of the current government.

The crown state of India, Jammu and Kashmir (J&K) is also very much in focus and is slowly and steadily picking up the pace. 

Meaning of a Start-up

Under Start-up policy 2018, a start-up is defined as any company:

Registered within a period of last seven years

With a yearly turnover of less than Rs 25 Crore

New-spring companies (splitting up or reconstruction of existing business does not fall under the purview)

Not incorporated/registered as a subsidiary of current Indian/foreign company

With a focus on innovation, development or improvement of product/services/processes

Incorporated/registered in J&K with 50 per cent native/intrinsic work-force

With a scalable business model (high employment generation and wealth creation opportunity)

Some Key Benefits of the Start-up Policy

Availability of co-working office Space with uninterrupted high-speed internet at subsidized price

Monthly allowance of Rs 10,000 for a period of one-year for recognised start-ups and Rs 12000 for backward groups, women entrepreneurs and specially-abled section (approval & conditions apply)

One-time the assistance of Rs 10 lakhs for product research and development

As per state industrial 2016-2026 policy, 100 per cent subsidy on purchase and installations of Diesel/Solar/Wind Generators or Hybrid Solar Wind System and uninterrupted power supply

International patent filing cost reimbursement (50 per cent of the actual cost incurred or up-to Rs five lakhs whichever is less)

Tax benefits and exemptions as per the Industrial Policy 2016 and any periodic changes made in the policy

Self-Certification process for Start-up and Micro and Small enterprises under Labour Laws

Corpus fund for training workshops, travel/daily allowance and subsidized stall space. Domestic/International travel to selected start-ups including women entrepreneurs

World-class Infrastructure support by providing Incubators and Fabrication Labs