Jammu and Kashmir known for manufacturing agitations, insurgency, and cross border terrorism is at the bottom in the list of states as far as manufacturing and industrial growth is concerned. The state has lowest manufacturing growth along with Bihar, and Madhya Pradesh. Ironically, the state in the past stood at same pedestal with Bihar and lead the country in being the most corrupt. Not surprisingly, the corruption, nepotism, and lack of conducive environment in the state. As a result both the services sector, and manufacturing are lagging behind even as PDP continues to call for liberal funding from centre.
It is because of lack of manufacturing growth, poor generation of revenue, and low tax compliance that the state always remain dependent on centre for financial growth. The latest survey by PHD Chamber of Commerce and Industry revealed that J&K has very little manufacturing growth. The manufacturing growth in J&K stood at mere 5.3 per cent in 2014-15 which is comparable to Bihar at 5.8 per cent, and Madhya Pradesh which was worst at 4.5 per cent. This when compared to an average 15 per cent of neighbouring Himachal and little distant Uttarakhand is nothing but shocking. Given the vast resources, land, and power produced by the state the poor state of manufacturing speaks of the massive failure of the government, as well as industry which has done little to change this dismal situation.
The survey has identified administrative lapses, delay in land acquisition, municipal permission, involvement of multiple agencies, and requirement of various approvals which slowdown the launch and implementation of projects.