Srinagar, Oct 12: Local entrepreneurs have driven Jammu and Kashmir’s industrial growth over the past seven years, setting up 2,056 of the 2,279 industrial units established in the Union Territory since 2019-20, official data accessed by Greater Kashmir shows.
Non-local investors established 223 units during the period. Together, the units involved a cumulative investment of Rs 16,598.97 crore and generated 75,848 jobs, official figures reveal.
Locals led in every year covered by the data. In 2019-20, they set up 292 units, compared with 10 by non-local investors. In 2020-21, 305 of the 310 units were local, with outsiders accounting for five. In 2021-22, local investors set up 167 of 175 units, while non-local investors set up eight.
Participation by outside investors increased from 2022-23 onwards. That year, 48 of the 629 units were established by non-local investors. Their number stood at 47 in 2023-24, rose to 59 in 2024-25 and came down to 46 in 2025-26. Despite the increase, local investors continued to account for the overwhelming majority of units in every year.
The trend assumes significance given the expectations that followed the changes of August 2019. The abrogation of Article 370 was accompanied by a strong policy and investment push, and the prospect of attracting substantial investment from outside J&K formed an important part of the economic narrative. The unit-level data show that while outside participation has grown, local entrepreneurs have continued to invest, set up new enterprises and remain the numerical backbone of the industrial sector.
An industrialist familiar with the sector said the figures demonstrate that local investors should remain central to the Government’s industrial strategy.
“Outside investment is important, but the local entrepreneur is already here, has invested his capital and understands the market. The new Industrial Policy should create conditions where both can grow,” he said.
The data also points to a substantial expansion in the scale of industrial activity. Annual investment rose almost twenty-fold, from Rs 296.64 crore in 2019-20 to Rs 5,824.42 crore in 2025-26, the highest in the seven years. It stood at Rs 2,153.45 crore in 2022-23, rose to Rs 3,389.37 crore in 2023-24 and Rs 4,145.59 crore in 2024-25, before reaching the peak last year.
The rise in investment has not been matched by a similar increase in the number of units. Only 224 units were established in 2025-26, against 405 in 2024-25 and 629 in 2022-23, yet investment touched its highest level. This suggests that the average investment in newer projects has risen considerably.
The available data classifies investors as local or non-local only by number of units and does not give an investor-wise breakup of the Rs 16,598.97 crore investment. The local share therefore applies to units alone and cannot be read as the local share of total investment.
Employment generation has also been substantial. It stood at 3,525 in 2019-20 and 3,697 in 2020-21, before falling to 2,357 in 2021-22. It then rose sharply to 15,719 in 2022-23 and peaked at 29,969 in 2023-24. It stood at 11,396 in 2024-25 and 9,185 in 2025-26.
The data comes at a significant juncture, with the Government moving towards finalisation of a new Industrial Policy after extensive consultations with industry bodies and chambers. These organisations have argued that the next phase of industrial development should not focus exclusively on attracting new investors, but also on strengthening enterprises that have already invested in J&K.
They have sought the revival of viable stressed units, including resolution of legacy debt, access to fresh working capital, relief from accumulated Government and industrial-development-related dues, and restoration of normal banking facilities.
Industry bodies have also sought a meaningful share for local manufacturers in Government procurement, along with MSME-friendly tender conditions and timely payments. They argue that public procurement can help sustain local manufacturing, investment and employment.
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