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Economy

Major industrial activities in J&K – II

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J&K's major industrial activities

Dhaar Mehak M

Major industrial activities in J&KThe informal sector is the part of an economy that is not registered with the relevant government authorities. The birth and growth of this sector is non-linear and follows no set pattern or the existing theoretical prediction. The empirical investigation following the developmental paths and trajectories of various developed and developing nations shows that birth, growth, decline and death hasn’t been the same. While the experiences of developed nations validate the eventual decline and end of the informal sector, the experiences of developing nations put the informal sector in an important position to usher in the process of industrial development.

In the developmental context of India, the informal sector has been an important source of providing sustenance to families, generating employment and meeting the local demand. Given the limited availability and access to public resources at the national level, the government policy and public sector have not been able to cater to the needs and demands of the people. As a coping strategy and a way out, people have found their ways towards the informal sector engagements. Over time the sector has rather shown an overall growth across the nation as against the prediction of the theories visualizing an end of this sector as one of the pre-requisites of development.

Agriculture for years has been a dominant economic activity in the region however mountain agriculture is not able to come out of subsistence to commercialization. As a result the returns from this sector have been low, pushing people out from it. Tourism has been another comparative advantageous economic venture in the region. Fragility and political instability has kept this sector from flourishing. As a result, people in J&K have steadily been pushed into the informal sector.

In Jammu and Kashmir, the trend corresponds to the national level evidence. The informal sector in the region has also registered growth over time as is validated by various national level data-sets including the NSSO and PLFS. Agriculture for years has been a dominant economic activity in the region however mountain agriculture is not able to come out of subsistence to commercialization. As a result, the returns from this sector have been low, pushing people out from it. Tourism has been another comparative advantageous economic venture in the region. Fragility and political instability have kept this sector from flourishing. As a result, people in J&K have steadily been pushed into the informal sector.

The Table ranks the dominant activities in the informal sector in Jammu and Kashmir as per the latest data availability. The ascendancy of these units points to their viability as low risk and viable profit ventures. Like the formal sector, the informal sector too mainly consists of need-based units. Most of the units deal in the retail sale of household perishable goods. These units which are in the form of shop establishments are found in all the localities of the region across rural and urban belts.

There is always business viability associated with these types of ventures. People from the households prefer to buy groceries from the nearest possible retailer and thus the normal profit is the least and assured return promised by these types of businesses. Tailoring activities rank just next. Given the changing seasons in Jammu and Kashmir and the distinct clothing style of both men and women, they prefer to stitch their clothes than buying ready-made and at the same time need different fabrics across the seasons. The investment in these ventures is small and can be household-based too. At the same time, this sector has the potential to empower women through household-based flexible employment.

J&K's major industrial activities

Being a consumer economy, the demand for all types of goods is very high in the region across the year, opening scope for the transportation industry. Over time there has been the development of the trend among the locals to invest in the freight transportation sector at the individual level. Though very popular among the lower-middle-class sector it has come to witness some decline in recent times due to a number of natural disasters and political fragility shocks. The current viability to invest in the sector is not too high however a huge number of existing informal sector participants is involved in this business activity.

Another related sector ranks just next. Despite the loss faced by the tourism sector the demand for Jammu and Kashmir tourism still exists in the country and across the globe. As a result, the taxi service in the region has been yet another promising venture in the informal sector. The use of taxi services has been rather limited among the people and startups like Kehwa and Jugmu cabs for the general public have just begun.

To begin with, the current major potential lies in the necessity-based industrial ventures. Based on the level of investment in hand both formal and informal sector are equally viable. If given proper consideration based on entrepreneurial instincts and government support, the businesses mentioned in formal and informal sector are low risk ventures.

The development of the beauty industry in the region appeared late but grew quick. Women especially have been involved in this sector. Opening and growth of the beauty parlours and salons can be seen spanning across the lengths and breadths of the region. This sector has especially shown growth in the region. Many women have opened these ventures inside their household premises making their operation flexible and demand localized. The local embroidery styles including hand Tilla and Aari are very famous across the globe. Families have been involved in these skill laden trades and have been passing on the same.

Both the demand and supply are high and being skill-based this sector always promises returns to the participants. The beginning of restaurant and café culture is equally novel in the region, the growth equally rapid! This sector has lately been growing and receiving an immense response, especially from the youth population. The startups in this industry have been doing well and the potential still exists for further diversification.

The construction and allied industry in Jammu and Kashmir, especially the Kashmir region has always had high-end potential given the local demand. As a result, the informal sector has shown some considerable growth in the manufacturing, production and sale of items corresponding to this sector. From the wood-based requirements to furniture and flooring and beyond the potential of this sector is yet to be explored completely. Given the innovations, people at the micro and household level can get involved in the customization of these items and expect a genuine profit and growth of the business over time.

From the analysis of both the formal and informal sectors in Jammu and Kashmir, it can be seen that the scope and potential of industrialization in the region is very high but specific. To begin with, the current major potential lies in the necessity-based industrial ventures. Based on the level of investment in hand both formal and informal sectors are equally viable. If given proper consideration based on entrepreneurial instincts and government support, the businesses mentioned in the formal and informal sectors are low-risk ventures. The future policymaking should be informed about the specific business potential in the region and the industrial policy push can be given based on these considerations.

Specialising in the industrial process of J&K, the author is a Senior Research Fellow in the University of Kashmir’s Economics Department. She can be reached at dhaarmehak@gmail.com

 

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Trade

Lenskart enters Kashmir market, opens shop at Regal Chowk

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Lenskart enters Kashmir market

Srinagar: Lenskart, India’s leading eyewear brand, has forayed into the Kashmir valley with the opening of its first outlet at Regal Chowk in Srinagar city. This expansion marks a significant milestone for Lenskart as it continues its mission to provide vision correction solutions to every individual across the country and beyond.

With seven successful stores already established in J&K UT’s Jammu city and plans underway for another outlet in Sanat Nagar, Srinagar, Lenskart aims to extend its presence to every nook and corner of Srinagar city.

“We have plans to expand our reach into other districts of Kashmir soon, ensuring accessibility to quality eyewear products and services for all residents,” said Dr Mohammad Mutaher Zerger, who heads Lenskart’s Portfolio and Franchisee Business Divisions.

Dr Mutaher is a seasoned professional with extensive experience in franchise management. Having previously served at McDonald’s, the new head of franchise at Lenskart brings valuable expertise in expansion strategies and operational excellence. “We are dedicated to providing state-of-the-art sophistication in eyewear technology, coupled with unparalleled customer service,” he added.

Lenskart’s commitment to accessibility and affordability is reflected in its offerings, including the innovative Buy One Get One (BOGO) facility available at all Lenskart outlets and online. Additionally, the brand provides complimentary eye testing facilities, ensuring that customers receive comprehensive care tailored to their needs.

Lenskart enters Kashmir market

Lenskart Founder, Shark Piyush Bansal’s Vision is to give correction-less vision to the entire India.

In line with its dedication to innovation and excellence, Lenskart recently inaugurated a cutting-edge robotic factory in Bhiwandi, where lens production and fittings are carried out with precision and efficiency. This advanced facility underscores Lenskart’s commitment to leveraging technology to deliver superior-quality products to its customers.

Lenskart enters Kashmir market

With a network of 1800 stores across India and a growing presence in international markets such as Singapore, Saudi Arabia, Thailand, and the UAE, Lenskart is poised for further expansion into other countries in the Middle East and Asia-Pacific regions.

Lenskart’s entry into Kashmir signifies not only its commitment to providing vision correction solutions but also its dedication to empowering individuals with the gift of clear vision, enabling them to lead more fulfilling lives.

 

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Ecology

Economic and Environmental Implications of Sand Mining in Kashmir Division

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Environmental Implications of Sand Mining
Uzma Hameed
Dhaar Mehak M.

Sand mining is the process of extracting sand from in and around the rivers, streams, lakes etc. Sand is also mined from beaches and inland dunes and dredges from ocean beds and river beds. In modern times sand is considered to be an essential raw material for construction purposes. As such, individual and private companies are increasingly demanding sand for construction purposes and this has placed immense pressure on sand resources. As a practice it is becoming an environmental issue as the demand for sand has been persistently witnessing an increase in industry and construction sectors of the economy especially in the developing pockets of the world. In developing nations, including India the annual demand for sand has been witnessing a perpetual rise of 07%. This has led to both an increase in the demand and price of sand in the open market. At the same time, people have been witnessing a profitable venture out of mining sand both legally and illegally leading to a number of issues and concerns.

Mining has been identified as the spine of the construction and infrastructure-centric economic growth and development process of the developing world, India being no exception to the same. Given the geographic extent of the country, the sand resources in the country have been plenty. However, like any other natural resource, the quantum of sand in India is limited. The usage however has been in practice right from the pre-historic times, the demand and usage being all time high in the contemporary times. The first recorded history of mining in India dates back to 1774 when the English company was granted permission by the East India Company for mining coal in the Raniganj coal fields.

After the colonial independence of the country, the growth of mining under the aegis of successive five-year planning processes has been quite speedy. Mining is among the significant economic activities of the country. The Gross Domestic Product (GDP) contribution of mining in India ranges between 2.2% and 2.5%. Given the historicity associated with mining in the country, its extraction and utilization processes have undergone a major shift towards modernization. The economic reforms of the 1991 and 1993 National Mining Policy further especially contributed towards the growth of the mining sector. The Indian mining industry in contemporary times provides job opportunities to around 7 lakh individuals. Given the diversity of the mining activities across the country, each state specializes in a related activity that it possesses a comparative advantage in especially in light of the reserves.

Given the geographic nature and extent of the region of Jammu and Kashmir, sand deposits in the region have been a common sight. At the same time, given the cold climate of the region, the need for secure housing has always been prioritized by the populace and governance of Jammu and Kashmir. With the evolution of construction processes and techniques, the shift from traditional wooden houses towards modern concrete houses has been widely witnessed. One of the main raw materials used for the construction of such houses has been identified as sand.

There are approximately 261 mineral blocks across the districts of Kashmir amongst whom the majority are situated along the bank of the river Jhelum. The mineral blocks in Kashmir contain sand deposits and various other minerals. One of the mining hotspots of the Kashmir division is the town of Bijbehara, locally known as Vejibror. While Bijbihara is also known as the town of Chinars, it has historically been a significant contributor towards the local economy. The town is located on National Highway 44 along the extended banks of the Jhelum River. It is also known as “Town of Chinars”. It is situated about 45 km from the capital of the Union Territory of Jammu and Kashmir, Srinagar.  Within the Bijbehara town, the area of Gadhanji-Pora is particularly the committed hotspot of mining activities. It is situated approximately half a kilometre away from the Sub-District headquarters of Bijbehara.

According to the stakeholders, the most prolific user of sand is the construction industry. Individuals are increasingly demanding sand for domestic and commercial construction purposes. While there has been an increase in both the demand and prices of the resource, it has placed immense pressure on the local sand resources and deposits. Locally sand is being used in almost every construction-related activity from cement and concrete to plastering, roofing, grouting, painting etc. It is also commonly used in constructions like mortar, concrete, and cement strength, mass and stability.

Because of its smooth texture, better bonding qualities, and low impurity concentration, river sand is the most often utilised in Kashmir due to its quality, quantity and availability. Sand is the key component of concertation. Sand mining is rampant at many places along the Jhelum River, especially in the Bijbehara.

 Given the extensive mining in the region, at certain points, the miners have breached the banks of rivers. The miners often drive their heavy vehicles straight into the water causing huge damages to the bunds along the river. These miners have lately also been using other heavy machinery like machine excavators and bulldozers in attempts to extract more sand in less time. By removing more sand than the rivers can naturally replace with the sediments it carries downstream, sand mining activities carve a deeper and narrower bed. It further goes on to lower the water levels in the river below the usual, speeds up the flow and erodes the banks. The biodiversity within and along the river is damaged. The fishes and other aquatic species that closely rely on the local bio-diversity are increasingly coming under threat.

Abdul Rehman, a local resident and fisherman, who has been fishing for the past 40 years describes his deteriorating experience, “Earlier if I covered an area of 3 km in the river, I would catch 6-8 kilograms of fish. Now, covering the same distance, I barely manage to catch 250 grams”. People from the Pazalpora area of Bijbehara, where the banks have been breached at multiple places, lament that they have been left all the more vulnerable to reoccurring floods because of unthoughtful activities like these.

The sand miners in and around the Bijbehara area of Anantnag district have been vandalizing the Jhelum River illegally. The damage is being increased manifold by the increasing use of heavy machinery for speedy mining of sand. After the devastating floods of 2014, the state government has been spending a significant amount of state money on the restoration, repair and upgrading of the banks of the river Jhelum. The so called and rightly called, ‘sand mafia’ across the valley in general and Bijbehara area in particular is breaching the sensitive river banks for the monetary interest of a few greedy people.

As such, as a collective voice basing our understanding on the facts mentioned above, it falls upon both people and the authorities to look deeper into the issue. As a matter of sustainability, now is the high time that the matter is dealt with an iron fist.

The authors are affiliated with the Department of Economics, Islamic University of Science and Technology and can be reached at dhaarmehak@gmail.com

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Economy

Global eCommerce boom and local traders of Kashmir

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Global eCommerce boom Kashmir

A Structural Shift in the Market Preferences

Dhaar Mehak M
Tabeen J Wali

The global eCommerce market was expected to be worth a total of $5.7 trillion by the end of 2022. That figure is estimated to grow over the next few years; exhibiting the fact that borderless eCommerce is becoming a profitable option for online retailers. It is giving a market space to one and all with a potential or product to sell. Only two years ago, 17.8% of sales globally were made from online purchases. That number is again expected to reach 20.8% by the end of 2023; a 2 percentage point increase in eCommerce market share. This growth is expected to continue, reaching 23% by 2025, translating to an increase of 5.2 percentage points in just five years.

Economic projections and forecasts predict the global retail sales growth to rise even further and take up more retail market share. According to research completed by eMarketer and Statista, online retail sales will reach $6.51 trillion by 2023, with eCommerce websites taking up 22.3% of total retail sales. Although retail has had it tough since 2020, every national market covered by eMarketer saw double-digit eCommerce growth. The trend continues globally: Latin America (including Peru, Brazil, Argentina, Chile, Colombia, and Mexico) saw $104 billion in eCommerce sales in 2022, up 22.4% from $85 billion in 2021. The UK is forecasted to continuously increase by $85.7 billion (+42.88%) within the next years.

China continues to lead the global eCommerce market, accounting for 46.3% of all retail eCommerce sales worldwide, with total online sales just over the $2.8 trillion mark in 2022. It also has the world’s most digital buyers, 842.1 million, representing 39.4% of the global total. The US eCommerce market is forecasted to reach more than $904.9 billion in 2022, a little over a third of China’s. After China and the US, the third-largest eCommerce market is the United Kingdom, taking up 4.8% of the retail eCommerce sales share. The UK is followed by Japan (3%) and South Korea (2.5%). The top five eCommerce markets haven’t changed since 2018. Trends from eMarketer suggest that these markets will stay in the top five until 2025.

While the whole world has been witnessing the structural transformation and shift in terms of market transformations from retailing to online shopping, the Indian economy has been a part of the process. In light of the same, the Jammu and Kashmir economy has had an equal and equally growing participation in the same. The advent of the internet and the arrival of eCommerce technology in the lives of average Kashmiris have changed the shopping preferences and experiences of the locals. People no longer have to battle issues like vehicular traffic on the roads or wait in queues for long hours. Accredited to the growth of eCommerce technology, locals have been empowered to shop anywhere-anytime just at the click of a button.

However, in the recent past, there was no (or very limited) concept of eCommerce in Kashmir. Smartphone availability to the general public was rare. The masses were barely aware about the internet facilities and global communication channels. There was no idea of online shopping, online transactions, etc. With time and the availability of the internet along with the growing mobile phone penetration, eCommerce made its presence felt in the valley. However, due to slower internet connection issues like 2G and lack of awareness, people initially had apprehensions and thus were afraid of buying things online.

Global eCommerce boom Kashmir

Tracing the roots and history of online shopping awareness in J&K, it dates back to the year 2008 when the mobile internet was making its headway into the valley. People were gaining affordable and available access to wireless internet. It was around the same time that after bearing a lot of hardships with sorting out the supply chains Flipkart became operational and function in the region. the initial years were tough and hard but the company stood steadfast. It took some time for Flipkart to cut through lots of hurdles alone and get to success. Being the only player in the online market in the region for quite some time it was a big deal to keep surviving and floating. But the outcomes were a success.

Steadily as people gain access to quality internet services and advanced smartphone technology the word spread. It was observed that doorstep delivery was actually a reality. At the same time, the quality of the delivery matched the promises of the website. The trust factor got built. Witnessing optimism within the J&K market, other companies like Amazon, SnapDeal, and other local online stores, etc., started jumping in to tap into the growing eCommerce market. The consumers got the opportunity of choosing from a wide range of products. Not only that, discounts and sales from time to time offer big benefits to consumers.

All these factors have been contributing towards a structural market shift. People from across J&K have been moving from in-person retail shopping to online shopping. While the consumers in the region have surely benefitted both in terms of utility/satisfaction and profit maximization, the retailers have been losing.

The J&K economy is predominantly characterized as a consumer economy. The characteristics of being a producer and self-sufficient economy have been limited and rather absent for a long time. It is the retailer of J&K, who has been at the losing end on account of the growth of the online markets. Retailing has been one of the most common business ventures of people across the region of J&K. Setting up of the shops and selling various items has been a known venture. People for generations have been relying on this activity. Lately, the structural change is challenging this segment of J&K businessmen and the immediate solution visible is evolution. These businessmen, particularly retailers, need to adjust to the changing market and make themselves competitive enough to compete with global online sellers. The only other option is to let the business supper, deteriorate and shut down.

The authors are affiliated with the Department of Economics, Islamic University of Science and Technology & can be reached at dhaarmehak@gmail.com and tabeen45@gmail.com

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