Events
                        


Contact  |  Sitemap

India  |  States  |  Opportunities  |  Information

 

You do not have flash player installed

Key Industries, Industrial Potential & Trends

home
 

Key industries

Jammu & Kashmir is vested with a good mineral base, substantial water resources, and is famous world-over of its handicrafts, handloom products, tourism, horticulture produce and cottage industry. The valley offers a dust-free environment, which is best suited for the development of low volume, low weight and high value industrial units. These include electronic components and equipment or items requiring precision engineering, products using the rich mineral resources of Kashmir including limestone; gypsum and quarzite ore are also suitable. The Jammu region on the other hand has potential for development of all types of industries. In the Ladakh region demand based and resource-based industries can be developed

Share of industries in the Gross Value Added (Per cent)
Industry Share in GVA (2002-03 QE)
Manufacture of Textiles 24.7
Manufacture of Food Products and Beverages 21.2
Manufacture of Other Non-Metallic Mineral Products 9.4
Others 8.6
Manufacture of Basic Metals 7.6
Manufacture of Furniture; Manufacturing n.e.c 6.8
Manufacture of Coke, Refined Petroleum Products and Nuclear Fuel;  6.2
Manufacture of Machinery & Equipment n.e.c. 5.3
Manufacture of Chemicals and Chemical Products 26
Manufacture of Fabricated Metal Products, Except Machinery & Equipment 2.2

Source: Annual Survey of Industries

Agriculture resources, manufacture of textiles, food products and beverages and non-metallic mineral products contributed to more than 55 per cent of the gross value added by the industry in 2002-03. Some of the key industries on the state are:

Mineral based industry

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.

Minerals Commercially Exploitable: Mineral
Coal Lignite
Limestone Gypsum
Cementclays Bauxite
Graphite Magnesite
Saphire  

A number of mineral based projects in the state have also been identified for private investment.

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

Source: IndiaStat

Gems & jewellery

Given the rich tradition of handicrafts and the availability of required skills, processing of gems and jewellery is one of the key industries in the state

Exports of the SSI units in J&K

  • Plastic products

  • Textile items including hosiery products.

  • Cricket bats and other sports items.

  • Walnut, walnut kernals.

  • Bitter appricot nuts

  • Foundry fluxes and chemicals.

  • Chemical and basic drugs like Amitriptyline HAD BP Cyproheptadine HCLBP, Metoclopharmzine HCL BP and Trifluoperazine HCL BP.

  • Sewing Machine. There is large potential for export available in the state for which investment can be made.

Floriculture & Horticulture

J&K state has suitable agro-climatic conditions for cultivating variety of flowers. The floriculture industry in the state has potential of catering to the domestic and international markets. The horticulture industry in Kashmir on the other hand, has become the bulwark of rural economy of the state. The state produces apple, cherry, pear, walnut, almond, peach, saffron, apricot, strawberry and plum. The industry earns revenue of over US$ 10.5 million yearly and provides job facilities to thousands of people directly and indirectly
 

Production of flowers (in MT)
1996-97 1997-98 1998-99 1999-00 2000-01      2001-02
55.5 80.1 51.8 24.4 20.4 61

Source: IndiaStat

The Jammu and Kashmir Horticulture Planning and Marketing Department has entered into a tie-up with the National Agriculture Co-operative Marketing Federation (Nafed) to procure fruits directly from growers on a commission basis

Tourism

Endowed with the scenic beauty of snow-clad mountains, bubbling streams, sparkling lakes, and rare fauna the state has attracted tourists from all across the world. Not just adorned with the innumerable gifts of nature, he state is also host to a number of historic sites of pilgrimage. The state has also been selected for the coveted National Tourism Award for 2003 for the strategies adopted by the state to boost tourism activity.
 

Domestic/Foreign Tourists in J&K
Year Home Foreign Total
1995 375 8198 8520
1996 7027 9592 9967
1997 99636 9111 16138
1998 200162 10247 109883
1999 104337 17130 217292
2000 66732 7575 111912
2001 24670 5859 72591
2002 24672 2686 27358
2003* 12314 748 13062

Note:  * till 8th Aug
Source: IndiaStat

Sericulture

Sericulture is one of the oldest industries in the state. The state houses two large silk factories - in Srinagar and Jammu. The Srinagar factory manufactures about 300,000 meters of various types of silk fabrics, georgette, parachute and suiting.


Source: IndiaStat

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 lays major thrust on production of quality cocoons at remunerative prices to the farmers.

Handicrafts

Handicrafts is the traditional industry of the state and has been of crucial importance given its large employment potential and the demand of handicrafts both within and outside the country. Some of the items of production include paper-mache, woodcarving, carpets, shawl making, embroidery etc. The handicrafts industry; especially the carpet industry, has been a source of substantial foreign exchange.

A pashmina dehairing project assisted by the United Nations Development Programme (UNDP) will come up in the Leh industrial estate of the state. The estimated cost of the project is around US$ 1.8 million with machinery worth US$ 0.4 million imported from China

Investment scenario

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

Current investment inflow

Industrial investment inflow

Cumulative since August 1991 to Proposed Investment (US$ million) Proposed Employment (Nos)
Mar-98 120.8 26609
Mar-99 172.2 36380
Mar-00 189.3 36827
Mar-01 190.7 37394
Mar-02 223.3 37764
Mar-03 435.7 45025
Mar-04 634.5 51828
Nov-04 991.3 61890

Source: Department of Industrial Policy and Promotion

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.

Business opportunities

  • Private participation is encouraged for setting up medicinal gardens.Two projects for setting up herbal gardens and production of quality planting material are to be started in the state.

  • A Special Economic Zone (SEZ) is planned to be set up in Srinagar to facilitate and promote export of handicrafts from the state.The proposed SEZ will have custom clearance and other requisite facilities under one roof for export of handicrafts, which are in great demand in the US, the EU and Arab countries.

  • The state government has decided to float global tenders for extraction of sapphire from the Padder mines in the Doda district.

  • Given the rich heritage and the availability of required skill in the gems and jewellery industry in the state, the state offers to be a promising hub for the industry. The state holds ample potential to cater the growing domestic and international demand.

Success stories

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 3¥115 and 4¥120 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)

ITIL is a leading telecom company manufacturing the entire range of telecom equipment includeing telephones, large digital switches, transmission systems, microwave, fibre optic systems and satellite communication systems

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.

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 born 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 mployment 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.
 

Content Source: www.ibef.org

 
Andhra Pradesh
New Page 2