Small industries are integral to the economic growth of Kashmir, a region celebrated for its natural beauty, culture, and craftsmanship. These industries not only provide employment but also preserve the region’s heritage. The inadequate infrastructure and limited market access pose challenges to their growth. Despite these obstacles, small industries have been resilient and adaptable and addressing their challenges can ensure their continued success.

Small industries in Kashmir are closely tied to its cultural identity. From Pashmina shawls and hand knitted carpets to papier-mâché and walnut wood carvings, these crafts symbolise the region’s rich heritage. They also provide crucial employment, with nearly 60% of jobs in Kashmir’s industrial sector tied to small businesses. These industries contribute significantly to the Gross State Domestic Product (GSDP), adding approximately ₹10,000 crore in 2023. They not only sustain livelihoods but help preserve traditional art forms, making them essential to the region’s economic and cultural fabric.

Kashmir’s small industries include a wide range of products and services, all contributing to the region’s economy. Handicrafts, particularly Pashmina shawls and carpets, are highly valued for their quality and craftsmanship. Papier-mâché and walnut wood carving reflect the artistic creativity of Kashmiri artisans. Horticulture is another vital sector, with Kashmir producing 77% of India’s apples and other fruits, alongside small-scale food processing units that add value to the region’s produce. Kashmiri saffron, which holds a Geographical Indication (GI) tag, is another important export commodity. Additionally, the textile and wool industry produces high quality garments, further supporting the livelihoods of many artisans.

Small businesses in tourism, such as houseboats, handicraft shops and tour operators, play a crucial role in sustaining Kashmir’s tourism industry. Despite their importance, small industries face challenges such as political instability, which disrupts production and market access, and infrastructure deficits, including poor road connectivity and a lack of cold storage. Financial constraints and limited access to institutional credit also hinder growth. Market access remains a significant issue, with many artisans struggling to reach buyers beyond the region due to poor e-commerce infrastructure and high transportation costs. Skill development is also a concern, as outdated training programs hinder innovation and productivity. Additionally, climate change has begun to affect agriculture based industries, with erratic weather patterns reducing saffron yields.

To support the growth of small industries, the government has introduced several initiatives. The Prime Minister’s Employment Generation Programme (PMEGP) provides financial assistance to micro and small enterprises and over ₹500 crore has been disbursed to Kashmiri entrepreneurs since 2018. Products like Kashmiri saffron and Pashmina have received GI tags, which have increased their export potential. The Industrial Development Scheme (IDS) offers incentives to encourage industrial growth. Skill development programs like Himayat and USTTAD help train youth in both traditional and modern skills. E-marketing initiatives such as GeM (Government e-Marketplace) also support artisans by connecting them with government buyers.

Despite challenges, many entrepreneurs have found success. E-commerce platforms like Kashmir Box and Craft World Kashmir have expanded the reach of Kashmiri handicrafts, with online sales growing by 40% in 2023. Women entrepreneurs are also emerging as significant contributors, with organisations like SEWA empowering women artisans. Furthermore, tech-driven innovations, such as blockchain technology and agro-tech solutions, are reshaping the sector, improving transparency and supporting sustainable farming practices. Key facts highlight the importance of small industries, with the handicraft sector employing over 3.5 lakh artisans and Kashmir’s apples generating ₹8,000 crore annually. Saffron exports increased by 28% in 2023, reaching ₹300 crore.

Small industries are the backbone of Kashmir’s economy and their development is essential for the region’s future. As Ghulam Nabi Dar, President of the Kashmir Handicrafts Association, emphasises, fostering these industries will generate employment and preserve cultural identity. Irfan Nabi, Co-founder of Kashmir Box, notes the role of e-commerce in connecting local artisans with global markets. Dr. Ashfaq Lone, an economist at the University of Kashmir, highlights the need for the government to address infrastructure and financial barriers to unlock the full potential of small industries.

To maximise the potential of small industries, a strategic approach is needed. This includes improving infrastructure, such as road connectivity and industrial parks, and expanding cold storage and processing units. Financial inclusion must be prioritised by simplifying loan procedures and increasing access to microfinance for rural entrepreneurs. Market expansion efforts should focus on promoting Kashmiri products internationally through trade fairs and developing robust e-commerce platforms. Skill development initiatives should preserve traditional crafts while incorporating modern techniques. Environmental sustainability should also be a focus, promoting climate-resilient agricultural practices and investing in renewable energy.

Small industries are vital to the cultural and economic life of Kashmir. With sustained efforts from the government, private sector, and local communities, these industries can overcome their challenges and drive sustainable growth. Agha Shahid Ali aptly said, “Kashmir is the place where the sun never sets on the dreams of its people.” Through the development of small industries, these dreams can become a reality, leading to a brighter future for the region.