J&K Startups: SC Verdict on Article 370 Feels Like A Wow

On December 11, 2023, the Supreme Court delivered a landmark unanimous verdict upholding the validity of the Centre's 2019 decision to abrogate Article 370 from the Constitution, thereby revoking the special status of Jammu and Kashmir.

This decision has had profound implications, with Prime Minister Narendra Modi emphasizing the transformative impact on the region, ushering in an era of development, democracy, and dignity.

“In its verdict on 11th December, the Supreme Court has strengthened the spirit of ‘Ek Bharat, Shreshtha Bharat’ - it has reminded us that what defines us is the bonds of unity and a shared commitment to good governance. Today, every child born in Jammu, Kashmir and Ladakh is born with a clean canvas, where he or she can paint a future full of vibrant aspirations. Today, the dreams of the people are no longer prisoners of the past but are possibilities of the future. After all, Development, democracy and dignity have replaced disillusionment, disappointment and despondency,” PM Modi said.

Economic Transformation Unleashed

Seems the decision to abrogate Article 370 has proven to be a catalyst for economic resurgence in Jammu and Kashmir, as the Union Territory is now experiencing an unprecedented surge in industrial investments.

Official data indicates that J&K attracted investments amounting to Rs 2153.45 crore during the financial year 2022-23, marking the highest figure in the past decade. Furthermore, the first half of the current financial year has seen investments totalling Rs 1752.1 crore.

A Thriving Economic Landscape

In addition to the realized investments, 169 industrial units with an investment of Rs 7096 crore and employment for 21,076 individuals are poised to commence operations shortly. Impressively, 6231 proposals with a cumulative investment of Rs 87,923 crore have been received, promising to generate employment opportunities for a staggering 392,162 people.

How J&K Industry Reacts To SC Verdict?

The industry leaders too are underscoring the government's unwavering commitment to industrial development, highlighting it as a top priority.

Welcoming the Supreme Court’s Verdict, he asserts that this focus is expected to generate significant employment over the next five years and bring in lot of investments into the region.

Talking to TICE News, Lalit Mahajan, Chairman of the Federation of Industries Jammu (FOIJ), said, “On behalf of the industrial sector of Jammu and Kashmir, particularly the Jammu region, I extend a warm welcome to the historic judgment delivered by the Honorable Supreme Court of India. This decision is grounded in various documents and the Constitution of India. I am hopeful that this matter has now been resolved, and individuals are actively engaged in the process of establishing industries. It is anticipated that substantial investments will flow into the state, providing abundant employment opportunities for the local youth of J&K.

One important matter I wish to bring to the attention of the Lt Governor of J&K is the urgent need for the development of industrial lands on a war footing basis. Currently, developed industrial lands are not available. This issue arises because investors who have already paid money to J&K SIDCO and SICOP are not receiving land allotments despite fulfilling premium, three-year advance, and three-year maintenance charges. This has resulted in significant resentment among prospective investors, and there is a risk of the project overshooting its intended timeline.”

“Regarding the youth of Jammu, it is noteworthy that an increasing number of young individuals are participating in the Startup India program of the Government of India and J&K. Similarly, in Kashmir, many youths are establishing their businesses. We commend the industries department for its efforts in promoting self-employment and entrepreneurship among the youth. It is anticipated that migration will decrease as job opportunities arise in the state through these new businesses,” Mahajan adds.

The Startup Landscape of J&K

Currently, there are approximately 111 registered startups operating in the Union Territory of Jammu and Kashmir. These startups span a range of sectors, with significant focus areas including e-commerce, horticulture, agriculture, the food industry, and crafts. JKEDI has been playing a pivotal role in nurturing and supporting this burgeoning startup ecosystem.

Additionally, the region houses 13 incubators, demonstrating its commitment to providing a supportive environment for emerging startups.

The J&K’s new Startup Policy for 2023 is on the brink of being officially notified soon. The policy, according to experts, is set to create a dynamic ecosystem for startups, fostering innovation, job creation, and economic growth. One of the standout features of the policy is the provision of seed funding. Recognized startups in Jammu and Kashmir will receive a one-time assistance of up to Rs 20 lakh, distributed in four equal instalments from the J&K government.

Supreme Court Verdict Unravelled

The Supreme Court's judgment dismantled the temporary nature of Article 370, asserting that it was a feature of asymmetric federalism and not sovereignty. Chief Justice of India highlighted, "Jammu and Kashmir did not retain an element of internal sovereignty after acceding to India." The Court also directed the prompt restoration of statehood to the Union Territory of J&K while upholding the validity of carving out Ladakh as a separate Union Territory.

Constitutional Evolution: Article 370 and Article 35A

A historical overview of Article 370 reveals its inception in 1947, drafted by Sheikh Abdullah and accepted by Jawaharlal Nehru. Over time, the Constitution evolved, with the addition of Article 35A in 1954, granting special rights to permanent residents of Jammu and Kashmir. The revocation of Article 370 in 2019 resulted in the abolition of Article 35A, opening up the region to non-Kashmiris for property ownership and dismantling local control over government jobs and college admissions.

Post-Revocation Developments

Since 2019, the government has actively invested in various sectors, including industries, healthcare, education, and tourism, signalling a comprehensive effort to bring prosperity to the region. Notably, Kashmir's lithium reserves have been identified for private mining, further contributing to economic growth. Tourism has flourished, and separatist violence has declined, as evidenced by the hosting of a G20 tourism meeting in Srinagar during India's presidency.

The Supreme Court's decision to uphold the abrogation of Article 370 has set in motion a transformative journey for Jammu and Kashmir, unlocking economic potential and fostering a climate of development. The surge in industrial investments reflects a promising future for the region, marked by employment opportunities and economic prosperity. As the government continues its focus on sustained industrial development, J&K is poised to emerge as a beacon of progress and opportunity in the years to come.

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