Beyond Rhetoric: Reimagining J&K’s Employment Future

Lokesh Dhar

The employment crisis in Jammu and Kashmir represents one of the most pressing challenges facing contemporary India, where political rhetoric has consistently diverged from ground realities. With official unemployment statistics revealing a staggering 6.1% overall rate and youth unemployment reaching an alarming 17.4% , the Union Territory finds itself trapped in a vicious cycle of unfulfilled promises and structural economic stagnation. Over 370,000 unemployed youth registered on the UT employment portal by early 2025 serve as a stark reminder of this crisis magnitude.

The current government’s tenure represents a textbook case of electoral betrayal, where campaign promises have transformed into governance failures. The National Conference’s manifesto pledge to systematically address the massive backlog of government vacancies—a cornerstone of their electoral strategy—has proven to be nothing more than political theater. Despite repeated assurances of filling all vacancies within 180 days and creating one lakh jobs , the administration’s inability to deliver on these commitments has left thousands of qualified candidates in perpetual uncertainty while perpetuating the region’s economic malaise.

This failure extends beyond mere administrative incompetence; it reflects a fundamental misunderstanding of modern economic dynamics. The government’s obsessive focus on expanding public sector employment, while neglecting private enterprise and entrepreneurial ecosystems, has created an unsustainable economic model reminiscent of socialist-era planning failures. The result is an economy heavily dependent on government largesse and seasonal tourism, vulnerable to external shocks and incapable of generating sustainable employment opportunities.

Recent data reveals the stark contrast between promise and performance. While the manifesto specifically committed to providing a ₹5,000 monthly stipend for unemployed youth**, the government categorically stated in March 2025 that “there is no plan to provide stipend to the unemployed youth” . Opposition leaders have consistently highlighted how implementation has been markedly slow, with only 575 lecturer positions announced by October 2024 as the first employment package. Of 32,474 vacancies across various government departments, only 3,727 positions had been referred for recruitment as of January 2025.

The region’s youth remain overwhelmingly dependent on government employment, creating what experts describe as a “labour paradox”—not a shortage of people, but a shortage of willing workers. This dependency manifests in alarming ways: the 2022 Sub-Inspector recruitment drew 95,000 applicants for just 1,200 posts , highlighting the massive mismatch between aspirations and opportunities. While local youth wait endlessly for government positions, over seven lakh migrant workers from other states fill essential roles in construction, transport, hospitality, and services across the Union Territory.

Paradoxically, while political leadership has failed to deliver on employment promises, Jammu and Kashmir’s entrepreneurial landscape has witnessed remarkable transformation despite institutional barriers. Official data reveals a 287% surge in DPIIT-registered startups since 2020, growing from 237 enterprises in 2020 to 917 by 2024 , including 333 women-led ventures. Over 1,600 startups have registered with the Jammu and Kashmir Entrepreneurship Development Institute (JKEDI), representing a three-fold increase within a single year.

This organic growth trajectory underscores the inherent entrepreneurial potential that exists within the region, despite policy inadequacies and bureaucratic hurdles. The startup ecosystem spans diverse sectors, with construction and engineering accounting for 49% of ventures, followed by skill development (12%), oil and gas transportation (12%) , and IT consulting (8%) . Such diversification indicates a maturing entrepreneurial consciousness that transcends traditional economic boundaries.

The Jammu and Kashmir Startup Policy 2024-27, targeting 2,000 startups by 2027 , represents a paradigmatic shift toward innovation-driven growth. The establishment of a ₹250 crore Venture Capital Fund , with an initial ₹25 crore infusion , alongside specific incentives for women entrepreneurs, signals governmental recognition of entrepreneurship’s transformative potential . The government has allocated ₹50 crore for 2025-26 fiscal for implementation of this policy, demonstrating serious commitment to startup ecosystem development.

Recent success stories validate this approach. Two J&K startups, Genetico Private Limited and GR8 Sports Private Limited, emerged victorious at the prestigious Startup Mahakumbh 2025 , clinching awards worth ₹20 lakh and ₹5 lakh respectively. This national recognition demonstrates the region’s emerging competitiveness in entrepreneurial landscapes and the potential for innovation-driven economic transformation.

The Central government’s intervention through targeted funding mechanisms has provided crucial support to Jammu and Kashmir’s emerging startup ecosystem. Under the Fund of Funds for Startups scheme , ₹50 crore was invested cumulatively in J&K-based startups through Alternative Investment Funds between 2020 and 2024. The Startup India Seed Fund Scheme approved ₹2.05 crore between 2021 and 2024, while the Credit Guarantee Scheme for Startups provided ₹14.35 crore in collateral-free loan guarantees during 2023-24.

The Prime Minister’s Employment Generation Programme (PMEGP) has emerged as another crucial catalyst for entrepreneurship. J&K received the highest assistance nationwide under this scheme, with ₹921.38 crore margin money subsidy for 44,542 projects from 2021 to January 2024, creating an estimated 356,336 employment opportunities —18% of total opportunities generated nationwide. Success stories like Nardeep Singh, who established a hydraulic equipment manufacturing unit with ₹24.96 lakh loan assistance and now employs over 25 youth , demonstrate the transformative potential.

However, significant challenges remain in transforming this potential into widespread economic impact. Small industries in J&K continue to face limited access to larger markets, technological constraints, skilled labor shortages, and financing difficulties. The region’s geographical isolation and inadequate transport infrastructure pose additional challenges in reaching national and international markets. These structural impediments require systematic policy interventions beyond mere financial support.

The economic transformation data reveals encouraging trends. In 2024-25 alone, 381 new industrial units started operations, generating investments worth ₹3,887 crore and creating 10,715 jobs. Under the New Central Sector Scheme (NCSS) 2021, J&K has witnessed investments of ₹10,471 crore, leading to creation of 51,897 jobs . The startup registrations have surged from just 69 in 2020 to 1,127 in 2025 , marking a remarkable transformation in entrepreneurial culture.

The path forward requires abandoning the failed paradigm of government job dependency and embracing innovation-driven growth models that have transformed economies across India and globally. Establishing robust incubation infrastructure, strengthening digital connectivity, simplifying regulatory frameworks, and creating mentorship networks are essential prerequisites for sustainable economic transformation.

Equally important is the cultural transformation required to move from job-seeking to job-creating mindsets. The spontaneous growth of the startup ecosystem, despite policy inadequacies, demonstrates the region’s entrepreneurial resilience and potential. Companies like FastBeetle , which has 70,000 users across Kashmir and handles last-mile delivery for Amazon and Flipkart, showcase how local innovations can achieve national scale.

The ecosystem is transforming job seekers into employers. Young entrepreneurs are no longer settling for traditional employment but are creating their own ventures, employing others, and building sustainable business models. The 326% increase in startup registrations from 237 in 2020 to 1,011 today, with 373 women-led startups, reflects this fundamental shift.

This organic momentum needs systematic support through comprehensive policy frameworks that address infrastructure, financing, skills development, and market access challenges. The government’s role should shift from being the primary employer to being an enabler of entrepreneurship, creating conditions where innovation flourishes and youth can build sustainable enterprises.

The unemployment crisis in Jammu and Kashmir is not merely a statistical aberration but a reflection of deeper structural and ideological failures. While electoral promises have left thousands in uncertainty, the emerging startup ecosystem offers a glimpse of the region’s untapped potential. The 287% growth in startups and success at national competitions demonstrate what systematic support and cultural transformation can achieve.

The youth of Jammu and Kashmir deserve more than political rhetoric and empty promises. They deserve an economic environment that values innovation, rewards entrepreneurship, and creates sustainable prosperity. The Central government’s funding schemes have provided over ₹66 crore in direct support , creating a foundation for systematic transformation.

The startup revolution has begun in J&K; it now requires systematic acceleration through comprehensive policy implementation, cultural transformation, and sustained commitment. Only through this approach can the region overcome its employment crisis and build foundations for long-term economic prosperity and social stability. The choice is clear: continue the failed paradigm of government job dependency or embrace the innovation-driven growth model that has transformed economies globally. The data shows the path forward—the question remains whether leadership will pursue genuine transformation over convenient rhetoric.

Lokesh Dhar is a Jammu & Kashmir–based policy consultant and political analyst.

The post Beyond Rhetoric: Reimagining J&K’s Employment Future appeared first on Daily Excelsior.

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