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India By State - Jammu and Kashmir - Business Opportunities

Business Opportunities



Jammu and Kashmir (J&K) offers boundless investment opportunities to prospective investors. It has rich reserves of water, agro, forests, herbal and mineral resources. Minerals which are commercially exploitable in the State are coal, gypsum, bauxite, lignite, magnetic and lime stone. A number of mineral based projects have been identified for private investment. Main industrial units in the State are handlooms, handicrafts, gems and jewellery, etc. which have been accorded the priority status. However, main occupation of the people in J&K is agriculture and related activities like horticulture, sericulture and floriculture. Besides, the scenic beauty of landscapes makes J&K the most preferred tourist hotspot.


Key Industries


About 80 percent population of the State depends on agriculture. Paddy, wheat and maize are the major crops. Barley, bajra and jowar are cultivated in some parts. Gram is grown in Ladakh. The horticulture industry in Kashmir has become the bulwark of rural economy in the State, providing job facilities to the thousands of people directly and indirectly. The major horticulture items are apple, pear, cherry, walnut, almond, peaches, saffron, apricot, strawberry and plum. The area under orchards is 242 lakh hectares. The State produces fruit worth Rs 2,000 crore annually including export of walnuts worth Rs 120 crore. Jammu and Kashmir State has been declared as Agri Export Zone for apple and walnuts. Market Intervention Scheme has also been launched for improving quality fruit for export by ensuing proper grading.

The State has suitable agro-climatic conditions for growing variety of flowers. The floriculture industry in the State offers a good source of supply to the domestic and international market. There is potential for this activity to be propagated on a commercial basis.

Floriculture & Horticulture

Horticulture is the bulwark of rural economy in the state generating revenue of over US$ 10.5 million yearly and providing job facilities to thousands of people directly and indirectly. With an immense potential for exports of processed food and allied services, the state is a leader in the production of apples, walnuts, pears, almonds and apricots. The state has suitable agro-climatic conditions for a variety of flowers and its floriculture industry offers a good supply to both domestic and international market.


Handicraft is the traditional industry of the State and has been of crucial importance given its large employment and export potential. Some of the items of industry are papier-mache, woodcarving, carpets, shawl making, embroidery etc. The handicrafts industry, particularly the carpet industry, has been a source of substantial foreign exchange. It provides employment to about 3.40 lakh artisans. The number of industrial units has also gone up. Jammu has Urban Haats, while a similar Haat is being commissioned in Srinagar. An Export Promotion Industrial Park has been established at Kartholi, Jammu. A similar Park is being set up at Ompora, Budgam. A pashmina de-hairing project assisted by the United Nations Development Programme (UNDP) is coming up in the Leh industrial estate of the State


The state has vast deposits of minerals like coal, gypsum, bauxite, lignite, graphite, magnetic and limestone. Out of above major minerals deposits, coal is exploited the most. The other minerals, which follow coal in exploitation, include gypsum and lignite etc. Lignite being used as fuel in industries in the state is also exported to Punjab and nearby states.

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Deposits of commercially exploitable minerals

No. Mineral Deposits
1. Coal 33 million
2. Gypsum 1 million (Proven) (Indicated 9.5 million)
2. Bauxite 8 million
4. Graphite 16 million
5. Line stone Around 200 million

Source: IndiaStat



Kashmir is extremely popular for its quality of silk and its traditional silk weaving industry. The state houses two large silk factories - in Srinagar and Jammu. The factory at Srinagar manufactures around 300,000 metres of various types of silk fabrics, georgette, parachute and suiting. The government woollen mill at Srinagar is another established manufacturing unit, which has a capacity of 2,018 woollen and 1,576 worsted spindles. The state also has a special package of US$ three million for the development of sericulture for price stabilization, procurement of cocoons, and cultivation of mulberry plantation in private lands etc.

Production of Mulberry Raw Silk


Jammu and Kashmir provides varieties of cultural, religious spots, adventure and sight seeing activities. It is famous for its towering snow clad mountains, bubbling streams, transparent and sparkling lakes, flower meadows, colourful orchards and rare fauna. All such features of Jammu and Kashmir have always attracted numerous tourists from all over the world. Tourism has emerged as an important and one of the major contributors to the State's economy. There are various places of tourist attraction in the State which are being visited by both foreign and domestic tourists. Kashmir Valley is described as 'paradise on earth.'

Jammu was visited by 1.1 million tourists during 2008. The state's major tourist attractions include Chashma Shahi springs, Shalimar Bagh and Dal Lake in Srinagar; Gulmarg, Pahalgam and Sonamarg in the valley; Ladakh and Vaishno Devi temple and Panitop near Jammu.

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Key Players

National Hydroelectric Power Corporation Ltd. (NHPC)

National Hydroelectric Power Corporation Limited was incorporated in 1975 as a private limited company with an objective to plan, promote and organise an integrated and efficient development of hydroelectric power. The Corporation later expanded its objects to include other sources of energy like geothermal, tidal, wind etc. Currently, NHPC has two operating plants Salal-II and Uri plants in the state with an installed capacity of 3115 and 4120 MW respectively. Sewa-II plant of 120 MW installed capacity is under construction in the state. Further, five projects have been identified by the state for detailed project report (DPR) and infrastructure development.

Indian Telephone Industries Ltd. (ITIL)

Founded in 1948, ITIL is the pioneering venture of India in the field of telecommunications. This premier PSU has contributed to 50 percent of the current national telecom network. It manufactures the entire range of telecom equipment including telephones, large digital switches, transmission systems, microwave, fibre optic systems and satellite communication systems. It has its manufacturing unit in Srinagar.

Singer India Ltd. (SIL)

Singer entered the Indian sewing machine market as early as 1871 and over the years has not only become the leading player in the sewing machine market but has expanded its product range significantly to cater to daily household requirements. The sewing machine production unit of the company is located at Jammu, manufacturing different models of the machine. The state also hosts television and steam press manufacturing units in the state.

Zamindara Rice Mills

Zamindara Rice Mills is a golden trading house exporting to 52 countries. It gained entry into the state with the Chenab textile mills of Jammu & Kashmir merging with the company in 1997. The company is a part of the A.K.K Birla group which is one of the top business houses and among the textile industry leaders in India.

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Maral Overseas Ltd.

The unit of Maral overseas was set up in 1985 in Jammu with technical collaboration with Devanlay -the manufacturers of Lacoste brand of sportswear. The plant in Jammu was India's first vertically integrated plant. The unit produces a wide range of yarns, fabrics and garments.

Jai Beverages Private Ltd.

Jai Beverages was incorporated in 1999 as a Pepsi India franchise in Jammu. The unit was established with an initial investment of approx. US$ 6.4 million. The plant boasts of ultra modern facilities and also has water treatment facilities at the plant. The state and especially the economy of the region have witnessed an upsurge since the inception of the plant. The unit has already contributed to over 650 direct and indirect employment opportunities in the state and the number is growing steadily overtime. The unit has thus significantly affected the level of industrialisation of the state.

Sutlej Industries Ltd. (SIL)

Sutlej Industries, a K. K. Birla group company is one of the top business houses and is also among the textile industry leaders in India. It is a government recognised golden trading house exporting to 52 countries. SIL entered the state when the Chenab textiles mills of Jammu and Kashmir merged with the Sutlej Industries in 1997.The plant produces synthetic and blended yarns and is equipped h the latest machinery, equipments and skilled labour force. Government of Jammu & Kashmir has selected SIL's Chenab textile mills for a special award for its contribution towards generation and promotion of employment opportunities in the state and contribution to the state revenue.

Hindustan Machine Tools (HMT)

HMT was incorporated by the Government of India in 1953 as a machine tool manufacturing unit. However, over the years the company has diversified into watches, tractors, printing machinery, metal forming presses and die-casting and plastic processing industry. HMT has seven exclusive machine tools unit with ISO 9001 certification. HMT has its manufacturing unit for hand wound watches in Srinagar which initiated in 1975.

Kashmir Steel Rolling Mills

The steel rolling mill is an SSI unit set up in 1981 with the initial investment of US$ 133 thousand for the manufactures of re-rolled iron and steel products. The unit has raised its investment in plant and machinery to about US$ 154 thousand and has provided 300 direct and 4000 indirect employment opportunities in the state. The unit has also been accredited with ISO: 9002 certification.

Export Profile

Jammu & Kashmir offers boundless investment opportunities to the prospective investors, as it has rich resources of water, agro, forests, herbal and minerals in addition to its unparallel natural beauty

Jammu & Kashmir has seen steady rise in the industrial investment proposals. The total number of industrial proposals surged from 67 during August 1991 to March 1998 to a significant 153 till March 2003 and further to 225 during August 1991 to June 2004. Consequently, the total proposed investment in the state grew from US$ 101.3 million to US$ 335.6 million and further to US$ 560.9 million during the period considered. An increasing share of investment in the state during the recent years can be expected to attract foreign direct investment in the near future.

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More Information on Jammu and Kashmir

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