The Central Government revoked Article 370 of the constitution that gave special status to the J&K state of the country. Under Article 370, Jammu and Kashmir had rights to have its flag, constitution, and laws. The removal of the article has opened many business opportunities in the state. In this blog, we shall discuss business opportunities in the state of Jammu and Kashmir.
What is Article 370?
Article 370 was included in the Indian Constitution on October 17, 1949. It exempts J&K from the Indian Constitution and permits it to draft its own Constitution. The article restricts the Parliament’s legislative powers in the state.
For some 600 princely states, the Act provided three options after the independence was restored: to join Dominion of India, remain an independent country, or join the Dominion of Pakistan. And a state could join either of the two countries through Instrument of Accession (IoA).
Though there was no prescribed form, a state could specify its terms to which it agreed to join. The conduct of truth for contracts between states is pacta sunt servanda, which means agreements must be kept. It means that the promises between the states must be kept and honoured. In the case of the breach of contract, the general rule is that the states would be restored to the original position.
Business Opportunities in J&K
Kashmir’s economy is completely dependent on agriculture and tourism. Since the business in Jammu and Kashmir was mostly dependent on the residents of the state, it was limited. The removal of article 370 is most likely to impact on the business sector and brought a lot of business. The biggest reason for this is the permission to the businessmen from other Indian states to start a small business in J&K. So, from a business point of view, the state has a lot of potential for growth in tourism, real estate, handicrafts, and food processing business.
The number of tourists in Kashmir was 1,64,000 and 1,52,000 in June and July 2019, respectively. The numbers are increasing every month as tourists from all over the country or even abroad visit J&K. In such a situation, hotel and transportation business can flourish in the state. Besides, if the real estate industry also invests in the state, then the business will witness tremendous growth, whereas the employment will also increase. All the residents of the state will have equal rights on increased employment.
Food Processing Business
With the removal of Article 370, the food processing business will also expand. The Ministry of Food Processing Industries says that a mega food park will be constructed in Jammu and Kashmir. After its establishment, agricultural products will be linked to the retail market, bringing retail traders and farmers together. It will directly benefit the farmers economically, and therefore, the food processing business will grow, and employment is also likely to increase.
Do you know that willow bats are made only in Kashmir? Willow bat is the best bat with which every batsman like to play. This type of bats is made in England as well as in Jammu and Kashmir of India. The willow orchard trees are present in the state in good numbers. With the removal of Article 370, people from all over the country will get the opportunity to learn workmanship.
Experts say that the willow bats from Kashmir will be widely loved across the world because the investment in the industry will increase. Besides, up to 9-% of such businesses are provided loan under the Central Government’s Prime Minister Employment Generation Program (PMEGP). An additional 15-20% subsidy is also provided.
Industry Chambers to open Office
Industry chambers like ASSOCHAM, FICCI, and CII are also preparing to open their offices in Jammu and Kashmir. Industry chambers will open their offices to explore the possibilities of investment. If everything goes well, a better strategy will be implemented.
BK Goenka, President of ASSOCHAM, said that the government has now realized the concept of one country, one constitution. In such a situation, the Industry Chamber will also contribute to the development of Jammu and Kashmir. We will set up an office there. The Industry Chamber will explore investment possibilities in the tourism, real estate, handicraft, and food processing sectors.
So, one can conclude that after revoking Article 370, the economic activities will increase in the state of Jammu and Kashmir. As against the past where J&K had not witnessed much business, there are clearer possibilities of business expansion and growth in the state.
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- Business vintage or age of more than two years.
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- The ITR filed in the previous year should be more than Rs. 1.5 lakhs
- The business owner should either own house or business premises.
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