 "Kashmir beyond tourism: How budding small-medium enterprises tap opportunities in paradise")
Cuddled in the lap of the majestic Himalayas, the pencil village of India, Ookhu, thrives along the banks of the Jhelum River, deep inside the heart of the Pulwama district of Jammu and Kashmir. The village has rightly earned its name by supplying pencils to the whole nation, surpassing competitors from the reaches of China, beating the precision of Germany, and standing tall as a pioneer of craftsmanship and industry.
On the other hand, the acclaim of the Kashmir willow bat has turned heads with its presence in national and international cricket tournaments. These bats, crafted from the valleys of Kashmir, have long been praised for their superior quality and performance in the cricketing fields. These examples of fine craftsmanship as well as international acknowledgement portray an untold story of Kashmir, a tale of many small-scale industries constantly fueling the fire of innovation and contributing to the economic development of the region.
Kashmir is renowned among people for its mesmerising views and rich cultural heritage, attracting tourists from all the nooks and crannies of the world. Although the place is a famous tourist hub, there is another side of the story that has been overlooked by all. There is an untapped and unacknowledged economic prowess in this region, with Kashmir housing a thriving ecosystem of small and medium enterprises (SMEs).
These SMEs not only work to contribute significantly to the economy of the region but also place it on the world map, shedding light on the diverse range of products that are produced here. Let’s unravel the perspective of Kashmir from an economist’s point of view, delving deeper into the various sectors beyond tourism that contribute to driving economic growth, fostering employment among the masses, and providing identity to the region’s unique manufacturing traditions.
The world beyond tourism
Despite being the heralding force of the tourism industry, a cornerstone of Kashmir’s SME sector is also attributed to its vibrant handicraft and handloom industries. The Kashmir produce has been renowned for its exquisite craftsmanship and intricate timeless allure. From handwoven shawls to meticulously crafted papier-mache artefacts, the region’s artisans take pride in their unparalleled skills and artistry in their creations.
Impact Shorts
More ShortsThe handicrafts and handloom industry of Kashmir produces a wide range of products, which are not only limited to the world-renowned pashmina shawls, carpets, rugs, papier-mache items, wood carvings, and embroidery. These products not only provide sustainable livelihoods to the people of the region but also put the rich heritage of the region at the centre of attention.
Not only do artisanal products shine in the SME industry of the region, but so do the culinary delights, which have been acclaimed far and wide by travellers. The prominence of the traditional Kashmiri wazwan, a perfect blend of the rich heritage of the region, has been a testament to the region’s gastronomic prowess. In terms of the variety of food, which is impressive, another favourite delicacy is the kahwa, made from exotic herbs sourced from the lush meadows of the region.
The food industry of Kashmir attracts people from far and wide to have an authentic taste, as well as helping the local population to be known on the world stage. While talking about the rich culinary expertise of the region, the prominence of being the saffron capital of the world waves a rich tapestry of agricultural activities. Kashmir is known for its wide variety of apples, almonds, walnuts, cherries, and various other dry fruits.
The suitable temperate climate of the region makes it the ideal choice for the cultivation of various varieties, contributing to the income of farmers as well as entrepreneurs alike. The demand for these exotic agricultural commodities not only supports the farmers but also promotes various agro-based SMEs in the region.
Moving on, another important industry is textiles, which has gained recognition in the region for the superior quality of woollen and silk garments. These intricately designed garments are a testament to the skilled workforce and also serve as a souvenir for the people who come to visit Kashmir all year round. The craftsmanship of these skilled people provides not only themselves but also the whole region with a unique identity.
Another important industry that thrives in this valley is the wood carving and furniture industry. The skilled people make use of their craftsmanship to bring life to ordinary items by transforming them into pieces of art and furniture with their signature vibrant hues. These wood-crafters are adept at transforming the beauty of the walnut and cedar trees into furniture and other decorative items. As such, it can be seen that in the region of Kashmir, SMEs are contributing beyond the tag of tourism while supporting the economic upliftment of the local people.
Statistically speaking, as per the annual report of the Ministry of Micro, Small, and Medium Enterprises (MSME) for the year 2022–23, the number of registered MSMEs in the Jammu and Kashmir region was 7,09,000. This healthy growth in numbers shows that the region is providing a baseline for the vast entrepreneurial landscape. These encouraging numbers highlight that the region is bustling with diverse and vibrant SMEs, encompassing varied industries that are not only limited to the tourism industry.
These figures show the crucial role that the various SMEs are playing in fostering inclusive growth in the region, addressing the challenges of unemployment and underdevelopment in rural areas, and promoting balanced economic growth in the region. These figures demonstrate a hopeful future for the region in terms of building upon its vast entrepreneurial landscape while also building the image of the region not only as a tourist attraction but as a thriving hub of innovation and industrial development.
Kashmir: A dynamic force meeting the challenges
While the figures show promising avenues for the land and instill hope in the SME sector of the region, there are still certain challenges that hinder its growth. As per the Economic Survey 2022–23 of Jammu and Kashmir, the Gross State Value Added (GSVA) share of the overall industry sector was 19.52 per cent in 2022–23.
This figure needs to be improved, and the SMEs can play a major role in this by overcoming the challenges and issues being faced by them. The most important and imperative challenge that pesters the land is the presence of geopolitical disturbances around the area, which, paired with the vast and varied landscape, gives rise to many infrastructural constraints.
A dynamic socio-political scenario and the innate constraints hinder the full utilisation of opportunities that the region possesses. Although faced with such kinds of issues and uncertainty, the population of the land is striving hard to preserve their cultural heritage while also progressing towards a more inclusive and prosperous future.
To overcome such unprecedented challenges, the sector has seen support from the government in the form of various policies and programs. This includes, but is not limited to, the Jammu and Kashmir Industrial Policy 2021–30, which is aimed at promoting the growth of various sectors by means of starting more SMEs in the region.
The policy is aimed at the growth and development of local businesses and helps them with land acquisition, capital support, and market support. Another important scheme that aims to help the growth of the SME sector in the region is the Jammu and Kashmir MSME Facilitation Council Rules 2017. To help the development of the region, the Ministry of MSME has facilitated the setup of a project management unit in the region under the reigns of SIDBI (Small Industrial Development Bank of India). This unit serves as the primary financial institution to promote the entrepreneurial ecosystem by means of direct financing, indirect financing, and microfinance.
These schemes are aimed at developing the region to enhance the skills of entrepreneurs and local artisans, which are addressing the needs of the market. All these avenues, supported by the government and widely accepted by the local people, make Kashmir a dynamic hub of economic activities while harnessing the transformative power of SMEs.
In essence, it can be seen that the SME sector of Kashmir represents a towering light of hope for the local people while battling the complex socio-economic landscape of the region. To help and support the SME culture of the region, there is a growing need to address the cultivating issues while also focusing on the multifaceted development of the region.
The region calls for the promotion of market linkages among its various SMEs while focusing on innovation and entrepreneurship to position their products effectively in the global market. The role played by the rich heritage of the region and the preservation of traditional craftsmanship will serve as the growth factors of the region. These unique abilities will not only contribute to the lives of the people economically but also safeguard the regional identity of the people while promoting cultural exchanges.
The empowerment that these industries provide to the local communities, especially the marginalised groups of women and youth, has changed the perspective around the region from one of disturbance to transformation. SMEs are acting as the frontrunners of social inclusion in the region while bridging the great divide in the region and connecting the various rural and urban areas of the region. The growth of the industries is greatly attributed to the indomitable spirit of the people of this land, which has passed the testament of time itself. The people, despite undergoing the various hardships of an uneven landscape and tough weather conditions, show a spirit towards growth and determination to strive despite all odds. The resilience of the people is a testament to the inherent strength of Kashmir’s entrepreneurial ecosystem and the resolve of the people to make their lives better.
The way forward
Looking ahead, the growth of the SME sector in the region calls for support from not only public stakeholders but also their private counterparts, with a bolster from the government. This support would not only be limited to improving access to financial services in the region but also ensuring that the people are acknowledged for technological changes.
This renewed environment would help the SMEs in terms of their development while unlocking the full potential of the region not only in terms of tourism but also in terms of its varied industries. The region also calls for integrating and recognising the SME sector as a valued asset for the global supply chains to expand the reach of the market and enhance competitiveness. With the growing popularity of e-commerce platforms and various other technologies, local entrepreneurs can showcase their products on a global level while breaking the barriers that have engaged them till now.
To support the growth of the SME sector, there is a need to develop and focus on export promotion, GI labelling, market linkages, and branding to make local brands synonymous with their national and international counterparts. It will help in developing a collaborative and knowledge-sharing environment in the region, which will help the region grow by enhancing the productivity and skill development of the local people. Seeing the growth potential of the region, it can be stated that there is a need to support the local entrepreneurial mindset in all possible ways. The potential of creativity and innovation would transform the SME landscape of the region with ideas from all over by tackling the common challenges and seizing the opportunities of the interconnected world. These initiatives would enhance the image of the region beyond tourism and position it as a driver of economic growth and balanced regional development on the global stage.
The region of Kashmir, despite being faced with dynamic challenges and unprecedented shifts, has birthed a successful SME sector. This thriving sector not only provides the much-needed economic growth of the region but also provides cultural preservation and social empowerment. Kashmir is not only home to rich and breathtaking scenery but also to some of the world’s finest products being produced by its SMEs. Kashmir has an undying spirit that forms the backbone of its vibrant SME ecosystem while harnessing the power of the rich heritage and environment to chart a path of growth and development.
The author is Associate Professor of Strategy and Entrepreneurship, Birla Institute of Management Technology- BIMTECH, Greater Noida. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect Firstpost’s views.
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