Post-Article 370, Jammu and Kashmir continues to be laggard in ease of doing business

More than a year after the Centre abrogated Article 370, Jammu and Kashmir continues to be laggard in Ease of Doing Business (EODB) as the Union Territory (UT) ranks 21st among 36 states and UTs in a latest survey.

EODB is a joint initiative by the Department for Promotion of Industries and Internal Trade (DPIIT) and the World Bank to improve the overall business environment in the States and UTs of India. The DPIIT in collaboration with the World Bank conducts an annual reform exercise for all States/UTs under the Business Reform Action Plan (BRAP).

The survey report which was released on Saturday in presence of Union Finance Minister, Nirmala Sitharaman in New Delhi, ranks Jammu and Kashmir 21st. J&K is among a few states/UTs which have not shown any significant improvement as in 2019, the UT was ranked at the 22nd spot.

The report reveals that smaller states like Uttarakhand and Himachal Pradesh are well placed ahead of J&K. J&K is also behind neighboring states like Punjab and Haryana, which are ranked at 19 and 16, respectively.

Also Read | No outsiders invested in J&K since Article 370 repeal

The report of EODB has come on the heels of a recently released report on the Export index which showed J&K at the bottom of the ranking table.

For a long time, the BJP government had blamed the special status of J&K under Articles 370 and 35A as a reason for investors shying away from the UT. Last August when J&K’s special status was scrapped, Prime Minister Narendra Modi said it was an impediment to J&K’s development.

From August 2019 till August this year while local investors had made Rs 900 crore investment in J&K, there was no investment from outsiders in the UT in one year.

Lateef Lone, who is in the hospitality business blamed “deep rooted corruption” as one of the biggest impediments for the new businesses. “Single-window clearing system has not been implemented in J&K. In order to start a business, one has to fill more than 20 different forms of different departments. The entire process is time consuming due to which new people are reluctant to enter into the business sector,” he said.

Lone said there has been no change in the attitude of bureaucrats in Kashmir post abrogation of Article 370. “Availing finances and getting clearances for new projects continues to be a Herculean task in J&K due to the negative attitude of the government,” he said.

Abid Ahmad, a banker said there is an immediate need to provide infrastructure, electricity, internet connectivity and timely and low cost credit for businesses to flourish in Kashmir.