Economic downfall of Kashmir causes and solution

 

Tahir nazir

Agar firdous bar roo-e zameenast, hameenast-o, hameenast-o, hameenast.”
(If there is paradise on Earth, it is here, it is here, it is here.) — Amir Khusrau

Once hailed for its unmatched natural beauty and cultural richness, Kashmir , the crown jewel of India today grapples with a prolonged economic crisis. The Valley’s economy has witnessed persistent setbacks, burdened by conflict, stagnating infrastructure, fragile institutions, and an increasingly disillusioned youth.Economic downfall, in this context, refers to a sustained decline in productivity, employment, and economic justice, marked by falling GDP, rising public dissatisfaction, disruption in business cycles, mass migration, and loss of investor confidence. Tools like the Lorenz Curve and Gini Coefficient help quantify the growing economic inequality in the region.But beyond numbers and policy debates, the economic collapse in Kashmir is also a story of ordinary people of farmers earning less, artisans moving out, students losing hope, and small businesses shutting down.

Major Causes of Economic Decline in Kashmir
1. Terrorism and Geopolitical Conflict
The shadow of terrorism, especially since the late 1980s, has deeply scarred Kashmir’s economy. Persistent border tensions, cross-border terrorism, and internal unrest have not only triggered violence and displacement but also handicapped the industrial and tourism sectors.
The Deccan Herald estimated Kashmir’s economic losses to be nearly ₹15 lakh crore by 2015.
The Kashmir Chamber of Commerce & Industry reported further damages during the 2019 to 2020 lockdown years.With investors wary of long-term instability, industries have hesitated, fleeing to more secure regions leaving behind economic vacuum and despair.

2. Lack of Job Opportunities & Weak Private Sector
The private sector cornerstone of job creation remains underdeveloped due to frequent shutdowns, policy uncertainty, and weak infrastructure. Nearly every fifth young person in Kashmir is unemployed, many with advanced degrees. According to Kashmir Times, even PhD holders remain jobless, waiting years for opportunities or migrating out.The Valley has witnessed a brain drain, with youth seeking education, exposure, and employment elsewhere often never returning.This intensifies the feeling of exclusion among local youth, who feel abandoned by the system.

3. Political Instability and Brain Drain
Recurrent political unrest chokes progress and detonates any attempts at private or international investment. Kashmir’s educated elite such as doctors, engineers, academics frequently move out, leaving critical sectors like healthcare and education crumbling under resource gaps.
This has also dented the emotional fabric of the society. Families are torn across cities and countries in the search for livelihood.

4. Outdated Education System
The education system is often said to prepare students for exams, not employment. Indian industry today demands skills, entrepreneurship, digital fluency not rote formulas.
The disconnect between curriculum and economic reality hampers job-readiness and innovation among Kashmiri youth, stalling the rise of a local entrepreneurial class.

5. Impact of Article 370 Abrogation
The 2019 abrogation of Article 370 promised economic integration, large-scale investments, and a development boom. While some infrastructural projects have kicked off, the expected private sector momentum remains elusive.Trust deficit, communication gaps, and bureaucratic paralysis have slowed real transformation on the ground. The promise still awaits fulfilment.

6. Internet Shutdowns & Communication Blackouts
Kashmir has suffered among the longest internet blackouts in Indian history crippling the digital economy, e-commerce, education, and healthcare.In 2019 especially, schools turned silent, digital startups collapsed, and even patients could not connect with telemedicine services.
Online classes and UPSC aspirants were left in the dark for months.In today’s connected world, denial of the internet is denial of livelihood, it deepens the digital divide and leads to irreparable economic loss.
7. Collapse of Tourism & Handicrafts Sectors
Kashmir’s tourism once provided seasonal employment to lakhs from shikara operators to pashmina weavers, many livelihoods were tied to the tourist economy.The unrest following Burhan Wani’s killing in 2016, the revocation of Article 370, and latest terror attacks like in Pahalgam (Baisaran) have scared away tourists.Local artisans too suffer. As customers dry up, centuries-old crafts like papier-mâché, walnut wood carving, and Kani shawls now face extinction.
Conclusion & The Way Forward
Kashmir’s economic decline is more than a policy challenge ,it is a crisis of dignity, opportunity, and aspirations. To reverse this trend, the government and civil society must co-create a roadmap grounded in inclusion, innovation, and peace.
Key Recommendations:
1.Human Capital Development
Reform the education system to equip youth with skills, creativity, adaptability, and entrepreneurial training.
2.Job Creation & Private Sector Revival
Through infrastructure push, MSME incentives, and public-private partnerships, new jobs can help anchor the young population back in the region.
3.Policy Stability, Peace-building & Reconciliation
Only a secure and politically stable Kashmir can attract sustained investment and restore local confidence.
4.Digital Kashmir
Ensure guaranteed internet access and digital infrastructure to boost e-commerce, gig economy, and education.
5.Empowering Traditional Sectors
Support tourism, handicrafts, and horticulture through global promotion, subsidies, and fair trade networks.Restoring Kashmir’s economic dignity is not just an administrative task, but a national duty. The spirit of Atmanirbhar Bharat must reach its most aspirational citizens ensuring that one day, these oft-quoted lines echo once more with pride:
“Agar firdous bar roo-e zameenast…”
Let that paradise be not just poetic — but practical, prosperous, and peaceful.

The post Economic downfall of Kashmir causes and solution appeared first on Daily Excelsior.

News