Jammu & Kashmir sees lowest FDI in India despite big investment push post Article 370 abrogation
Srinagar: Despite an ambitious policy launched in 2022 to attract foreign investment to Jammu and Kashmir, the state has recorded the lowest foreign direct investment (FDI) inflows in India over the past five years, according to official data.
The Centre’s aggressive push to rebrand Jammu and Kashmir as a new economic frontier after the abrogation of Article 370 in August 2019 has not yielded significant results, with foreign investors largely staying away. According to data tabled in the Rajya Sabha earlier this year, as cited by Deccan Herald on Monday, Jammu and Kashmir attracted only Rs 10.52 crore in FDI equity inflows since 2020, marking the lowest figure among all states and Union Territories.
In comparison, India's cumulative FDI equity inflow during the same period was Rs 21.62 lakh crore, reflecting the lack of foreign investor interest in the region.
Failed promises and stagnant progress
The disappointing figures stand in sharp contrast to the government’s upbeat narrative following the Article 370 abrogation, when it positioned Jammu and Kashmir as a major investment destination. The government had promised to transform the region, which had been grappling with conflict, into an "industrial and tourism hub" through a series of policy reforms, global investor summits, and new land-use rules to facilitate industrial growth.
The J&K administration unveiled an Industrial Policy with a target of attracting Rs 70,000 crore in investments and creating five lakh jobs in January 2022. However, nearly three years later, little has materialised on the ground. Many of the proposed projects are still at the memorandum-of-understanding (MoU) stage, with no visible progress in terms of infrastructure development or manufacturing units, added the report.
The promised industrial estates in Kathua, Samba, and Pulwama remain largely on paper, while land allotments to private players have faced bureaucratic delays and public opposition in certain areas.
Challenges in attracting investment
Officials and analysts point to several factors contributing to the poor response from investors, including persistent security concerns, bureaucratic hurdles, fragile connectivity, and a lack of a large local market.
“Investors look for stability and predictability, both of which remain in short supply in J&K despite the official claims of normalcy,” DH quoted an economist at Kashmir University as saying.
While the government continues to assert that "investment proposals worth thousands of crores are in the pipeline," the latest FDI data underscores a significant gap between policy intent and investor confidence.
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CPI leader attends RSS-organised Hindu meet, district unit seeks clarification
Manjeshwar: The participation of a CPI leader in a Hindu convention organised by the RSS has triggered discussion in political circles.
Sundari Shetty, former president of Meenja panchayat and a district committee member of the CPI in Kasaragod, attended the Hindu gathering held in Meenja. She offered floral tribute to a portrait of Bharat Mata and also addressed the gathering from the stage, which has led to controversy.
Following the development, the CPI district unit has issued a notice to Sundari Shetty seeking an explanation. Party sources said that the presence of a senior leader of a party that follows communist ideology at a Hindu convention has caused unease within the party.
There are indications that disciplinary action may be initiated against her in connection with the incident.
