Srinagar, September 8
The shadow of militancy over the state may have somewhat faded in the past few years, but the economy of the state is said to be sliding. The first-ever survey of the state since Independence, carried out recently, says "the huge infrastructural deficit spans both economic as well as social sector", and then comments sardonically that “the only infrastructure we have in excess is the administrative infrastructure".
"We are in danger of falling by the wayside while the rest of the country marches ahead riding on high rates of annual growth hovering around 9 per cent," G.A. Qureshi, director, Directorate of Economics and Statistics, which carried out the survey, told The Tribune. Though the survey report has confined itself to statistical figures, top officials involved with the survey say the state is slowly losing out on what once were regarded its potential strengths, like horticulture and power sector.
Another report, J & K in Indian Economy, presented by the directorate says the state has potential to generate 20,000 MW of hydro power and 16,200 MW of it has been identified. However, the state harnesses only 1,500 MW, thus the purchasing of power to meet its own demand. And there is not much to look up in future. "The investment in the Baglihar power project has only increased the budget, and we estimate to be spending Rs 10 crore to generate
1 MW of power which is way above the national average”, an official said.
The report says the export of fresh fruits, largely apple, from the state reached 8.58 metric tonnes in 2005-06, but officials added that qualitatively apple was losing out to Iranian and even those from Himachal in high-end segment due to lack of technological upgradation in apple plantation.
They said lack of private investment was the single biggest reason holding back the economy. Militancy has long been the “bogeyman” for everything going bad in the state, an official said, adding that political and regional gamesmanship of political parties had kept private players at bay. “Why should Reliance or Tata come to us on our own rigid terms when other states are welcoming them on their conditions ?” asked an official.
Surprisingly, the state imports milk, poultry products and meat despite having a figure of six animals per household, the highest in country. The national average is only three.
The banks have been wary of giving loans, thus hampering entrepreneurial growth, the report says, as against the deposit of Rs 100 they have given only Rs 48.35 on credit while the national average is Rs 75.14.
The unemployment rate in J & K is 4.21 per cent against the national average of 3.09, it says. The bigger concern, officials said, was much higher rate of unemployment, which has not been quantified, among graduates and above.
