In an interview to The News Now, Ankita Kar, IRAS, Managing Director, JKTPO, young, progressive and enabling officer tells all things about the industrial ecosystem of Jammu and Kashmir, and the role of her determined organisation to upgrade it.
- Where do you believe J&K’s industrial ecosystem, Jammu region in particular, stand?
As we all know, Jammu & Kashmir is a newly formed Union Territory of Indian Union created under the Jammu & Kashmir Reorganization Act, 2019 on 31st October 2019. The Union Territory (erstwhile Jammu & Kashmir State) has made some progress in Industrial development over the last decades and now we wish to augment those efforts with adequate nurturing on both the policy front and on the ground.
For example, Jammu & Kashmir had first announced its first Industrial policy in 1995, then in 1998. However, the Comprehensive Industrial Policy was announced in the year 2004 and later in 2016. We have tried to further strengthen it in the latest version which has become effective from 1st April 2021. Jammu & Kashmir Industrial Policy 2021 aims to address the challenges faced by industry and to create a Sustainable, Balanced, Progressive and Competitive ecosystem in the UT.
The industrial landscape of the UT is dominated by MSME and it plays a crucial role in propelling industrial growth and economy in UT as they contribute around 8% to the GSDP and employ the largest number of people in the manufacturing and services sectors.
Jammu & Kashmir has significant potential of growth in the field of Food processing, Pharmaceuticals, high grade raw silk, woollen fabrics, computer/electronics, and Information Technology as also in various service sectors such as Education, Tourism, Health, Information Technology and Skilling.
In an era of Competitive Federalism, Industrialization holds the key to foster economic growth, create employment opportunities and bring prosperity to the people.
- The J&K Administration and Central Government have in recent past come up with several trailblazing policies and initiatives to give impetus to the industrial sector here. Please throw light on them. Are we looking at more policies in the future?
Government of India has announced New Industrial Development Scheme for Jammu & Kashmir (J&K IDS, 2021) as Central Sector Scheme for the development of Industries in the UT of Jammu & Kashmir. The Scheme is upto the year 2037 at a total cost of Rs. 28,400 Crores. The main purpose of the scheme is to generate employment through investments which directly leads to the socio economic development of the area.
J&K has notified J&K Industrial Development Policy 2021, J&K Land Allotment Policy 2021 including 6 sector specific policies in recent times and we are working on other sector specific policies.
These initiatives will enhance the competitiveness of UT’s Manufacturing/service sectors through the implementation of focused Action Plans, thereby promoting GDP growth, creating more jobs and promoting exports to global markets. The policies are programmed to face the challenges and create opportunities for J&K and we wish they will place the UT firmly in the supply and value chains across India.
Industrial promotion agencies such as JKTPO, and sister organizations like SIDCO, SICOP, along with Directorate of Industries and Commerce perform various functions to promote industrialization in the UT and are handholding and counselling units for adopting better and efficient Management and Marketing Strategies.
- Some achievements of JKTPO that you would like to mention with respect to Jammu region.
Jammu and Kashmir Trade Promotion Organization (JKTPO), A J&K Government Undertaking has been incorporated as a Joint Venture of Government of J&K, Indian Trade Promotion Organization (ITPO), Export Promotion Council for Handicrafts (EPCH) and Carpet Export Promotion Council (CEPC), Government of India Undertaking under the Companies Act, 2013 on 30th May 2018. The main objectives of the organization are
- To build, support, maintain, increase and promote trade related activities and infrastructure in the UT of Jammu and Kashmir.
- To build, support, maintain such activities like e-commerce trade in the UT of Jammu and Kashmir.
- To organize trade fairs and exhibitions and invite wider participation in export promotion
We are the Notified nodal agency for Export Promotion, Brand Promotion for J&K and also the notified Investment Promotion Agency. Further, we are also working on strengthening the Start-up Ecosystem.
To mention a few of our achievements in the shortwhile we have existed, it is pertinent to explain how we approach trade. Any Trade Promotion means a 360 degree approach to value chain and coordination between multiple stakeholders. What we have understood is there is a need for all the stakeholders whether industry or growers, whether government departments of the UT or Ministries, whether EPCs or DGFT, to come together to build a common narrative.
Hence, we have established an Export cell and an Investment Promotion cell within JKTPO. We might do the same for start-ups in the future.
The Export cell has been very active in its coordination efforts between the District Committees under “District as Export Hub” and the DGFT – a bottom-up approach. It also indulges in holding Capacity building workshops for both traders and officials. It has held 3 registration drives till date and has recently been the trigger and organiser of the Export Help Desk at Jammu Haat. Conducting Global Buyer Seller Meets is another forte – good examples are the ones with Consulate General of India, New York and Toronto looking out for both Handicraft/Handloom sector as well as Agro products.
The IPA cell is another facet of JKTPO’s work. We take pride in the fact that we are a perfect one-stop shop for all new investors and suitably clarify the doubts according to the policies and guide them to the next step of onboarding on the land allotment portal or single window system wherein the notified procedure of the Committee handling gets activated.
Without Start-ups, no ecosystem is complete and I wish to state through your medium, we are looking out for suitable ways to promote and support Start-ups through methods successfully benchmarked in other states.
- Jammu and Kashmir’s first-ever and much-aggrandized Global Investors’ Summit was to be held in October 2019. The event was postponed to 2020, and road shows were held as a prelude. However, the event hasn’t seen the day of light.
The aim of the Summit was to exhibit the different investment opportunities available in the newly formed UT of J&K in sectors including tourism, film tourism, horticulture and post-harvest management, agro and food processing, mulberry production for silk, health and pharmaceuticals, manufacturing, IT/ ITes, renewable energy, infrastructure and real estate, handloom and handicraft, and education. However, the situation arising out of the pandemic has forced the Government to postpone the event. In the meantime, the work of addressing Investor concerns never stopped so much so that we are soon to reach the Rs 35000 Crore mark for the Interest to Invest ie. We have project proposals of that tune which will be suitably addressed by the Committees notified vide the aforementioned policies.
- How much investment J&K has been able to attract or is to attract in the near future?
Through various roadshows and initiatives and sustained efforts of JKTPO we have been able to attract 834 MoUs to the tune of Rs 34,000+ Crores of proposed investment. Our land allotment portal is now completely online since 2nd May and we have been advising investors to apply online ever since. However, we continue to guide them and address their queries pre-application and post-application. Here our coordination role comes to the forefront.
- What is the status of the execution of the work at ground level for these investors? What are the obstacles cropping up?
I don’t see any obstacles, rather a lot of activity to better systems. But like any multi-faceted system, there might be initial teething issues which the concerned organizations are constantly trying to address and improve.
Example would be the EODB initiative taken by the Department of Industries and Commerce which is making a significant headway in reducing compliance burden for both business interfaces and citizen interfaces. 54 services are completely online and remaining 74 services shall be made online very shortly.
- What are the plans to promote, diversify, expand and enhance competitiveness of industrial trade, including handicrafts & handlooms of J&K, in India and abroad?
Apart from the policy initiatives, the GoJK is also taking a serious view of improving infrastructure to increase our competitiveness.
Some of the important initiatives by J&K Government include:
- Upcoming Inland Container Depot at Samba
- Air Cargo Facility available at Srinagar, Expansion in progress
- All weather connectivity by 2024
- Night Flights
- International air Connectivity
- Double line Rail Connectivity
- Udhampur-Srinagar-Baramulla Rail link-272km in length to Kashmir will be completed within a year
Further, there is a full focus on growth of the Handicraft Handloom sector in the sector policy. Government has in fact notified a dedicated policy for the same which has various fiscal incentives to promote the sector.
From JKTPO’s side, we are policy advocates who take good benchmarks very seriously. The notified policies have in fact been created in-house with industry standards in mind. Further, we are working towards the global connect through engaging with overseas importers through our Buyer Seller Meets.
I would categorically state here that Jammu’s special arts/products also have a niche market which can be triggered through meaningful brand promotion and sustained efforts in bringing the markets to Jammu. Jammu Haat is one such initiative. JKTPO has been engaging with all the district administrations of Jammu Division and DGFT, as also Export Promotion Councils and FIEO to help us identify the right products and markets of Jammu.
- How is JKTPO supporting e-commerce trade here?
E-commerce gives businesses the ability to reach more customers than traditional retail. With so many people making their purchases online, it is the fastest-growing retail market, especially in the covid and post-covid era.
To promote products from J&K, a MoU with Flipkart has been signed by JKTPO. The platform aims to enable women entrepreneurs from J&K to showcase their products. The whole onboarding exercise needs sustained efforts and markets. It has a landscape of engagement right from cataloguing to logistics. We will address all e-commerce concerns of our Women of the Hausla Program for whose benefit this MOU has been signed. Moreover, JKTPO is also in talks with Amazon to explore the opportunity of tie-up for ecommerce related initiatives. We might also explore local e-commerce alternatives when the time is right.
- J&K, especially Jammu region, is seeing a rise in women entrepreneurs. What are the plans for them?
Women Self Help Groups have always formed the backbone of the local economy of the UT. These Self-Help Groups are involved in vegetables (including organic cultivation), Mushrooms, Apiculture, Food Preservation, Flower Cultivation, Kitchen gardening, handloom & handicraft etc. The new age Woman Entrepreneur is also now making her presence felt.
The GoJK is indeed looking into multiple ways to help the various segments whether through JKTPO’s Hausla Program or Mission Youth’s Tejasvini Scheme or JKNRLM’s UMEED.
- Your initiative, Hausla, demands a special mention here.
“HAUSLA- inspiring her growth” has been designed as a comprehensive programme which aims at promoting women entrepreneurship.
The programme has been made in a very scientific way, creating a channel for educated women to explore their potential and subsequently channelize their business acumen, helping them overcome challenges related to finances, legal, societal biases by focusing on their innate potential.
Key Interventions include
- Capacity building and mentoring programmes
- Access to hassle free credit
- Facilitating their products and services through e-commerce platform
- Marketing Support
Through the HAUSLA Program we wish to address all the key concerns of a woman entrepreneur alongwith making her aware of the industry practices, Govt policies, Banking Requirements and also provide her the necessary marketing and networking.
For the Purpose of creating a End-To-End Approach we have partnered with J&K Bank, MissionYouthJK, Flipkart and recently signed a MOU with FICCI FLO for providing the industry connect to capacity building.
- The J&K Administration has worked out 17 focus sectors that display the strength and aspirations of the UT. What steps are being taken for all these sectors?
The focus sectors are the key investment avenues. GoJK will showcase its sector potential at domestic and international platforms. There are 14 focus sectors identified: – Tourism and Hospitality, Horticulture and post Harvesting Management, Agro and Food Processing, Manufacturing Sector, IT and ITeS, Film Sector, Healthcare and Pharmaceuticals, Education and Skill Development, Infrastructure and real estate, Renewable energy, Handloom and Handicraft, Milk poultry and wool production, Herbal and Medicinal plant, Agriculture and Mulberry production of silk.
The Focus sectors were selected based on three predominant factors:
- Overall competitiveness of Jammu and Kashmir as a location for manufacturing and key potential areas
- Global outreach for investments and its preparedness
- Balanced, Inclusive and Sustainable development of UT
Tourism is important because the economic development of the UT has been greatly influenced by tourism. In J&K, tourism is a natural sector as it provides a holistic experience of natural beauty, cultural diversity, spiritual endeavour, and climatic regions. Recently much focus has been given on developing around Winter sports, Adventure, Border tourism, Film tourism. The Film Policy is a case in point.
The Handicraft/Handloom sector has a unique place in the socio-economic structure of J&K since it generates immense employment opportunities, and thus is an integral part of the rural and semi-rural livelihood matrix. In Jammu & Kashmir, 40,000 weavers including allied workers earn their livelihood from the handloom sector. Around 3.5 lakhs approx. artisans are directly and indirectly associated with the handicraft sector. Jammu and Kashmir is known for its handicrafts such as embroidery, shawls, crewels, woodwork, papier machie, carpets, chain stitch etc.’ It is pertinent to mention that 7 out of 9 GI products belong to this sector.
- How do you plan to address the wide range of concerns of the locals?
The Best way to address the concerns of the Locals is to make them active Stakeholders. Thus, conducive business ecosystem, easy access to systems (conversion to online systems), local employment avenues attached to investment policies, Skill development, Single Window Clearance Mechanism, Time Bound Approvals, Timely Grievance Redressal Mechanism and State of the art infrastructure could be few methods to attain parity.
- J&K is still a laggard as far as Ease of Doing Business is considered. What are the plans to ensure better ground reality in this case and subsequently, the rankings?
DPIIT had initiated a national Business Reform Action Plan (BRAP) in 2014 and the Jammu and Kashmir has started its implementation from 2017. Over the past two years Jammu and Kashmir have implemented various business reforms to improve the regulatory environment in the UT.
Several important reforms and measures with departments like Health & Drug Controller, Agriculture, Pollution Control Board, Labour, Forest, Power Development, Fire, Excise & Taxation, High Courts, Housing & Urban Development, Industries and Commerce in areas like labour, property registration, single window clearance system and central inspection framework have been implemented under UT level BRAP, leading to a smoother regulatory ecosphere. In this regard, the Department of Industries & Commerce will continue the BRAP exercise to take the reform at the UT level forward.
- J&K’s economy is fragile and has suffered setbacks due to multiple factors such as Terrorism, Article 370, Shutdowns, Internet, and pandemic being the latest. How do you believe, it can be improved towards becoming a stronger economy?
As a Union Territory with unique features and a strategic location, the speedy development of Jammu and Kashmir needed an integrated, inclusive and sustainable approach. Without addressing the issues such as building Infrastructure, creating a thriving Industrial ecosystem, and enhancing the skill set and capabilities necessary to drive innovation, the UT would have risked stagnation. But the last few months have seen hectic activity on all such fronts which can effectively ensue a whole new Industrial Climate if done right.
At our end, JKTPO is continuously working for creation of opportunities and capabilities related to growth by policy advocacy, investment facilitation and Aftercare, Export/Trade Promotion.
- ‘Jammu Haat’, the first-of-its kind ‘Trade Facilitation Centre’ of J&K has come up in Jammu. Please tell us what would be JKTPO’s role here?
Jammu Haat has a special place for JKTPO’s work which entails Trade Promotion entirely. We have been engaged from the time of conception to execution. Some of the special areas of work during the “Inauguration Week” have been the ODOP Product Display by Districts which was directly linked to our working as the nodal agency for “District as Export Hub”, Showcasing Women Entrepreneurship in the ‘Hausla’ Floor, Creation of Export Help Desk in association with DGFT amongst others.
JKTPO will strive further to utilise the space to provide market linkages to local Artisans and MSME units in coming times.
Also: Read my article at The News Now
Inside Out with Ankita Kar, MD, JKTPO
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