Shadab Peerzada
Shah Hamdan, also known as Mir Sayyid Ali Hamadani (Rahim-u-Allah Marqadahu), was a prominent Persian Sufi scholar and saint who played a crucial role in the cultural and socio-economic transformation of the Kashmir Valley during the 14th century. Arriving in Kashmir in the mid-1300s, his mission was not only to propagate Islam but also to bring about significant socio-economic reforms. Shah Hamdan introduced various crafts and skills to the valley, such as carpet weaving, papier-mâché, calligraphy, and wood carving, which became integral to the local economy. These crafts are still prevailing and were the most important source of financial ecosystem. He established educational institutions and promoted literacy, ensuring the dissemination of both religious and secular knowledge. His efforts in land reforms and irrigation projects improved agricultural productivity, which in turn enhanced the livelihoods of the local population. Shah Hamdan’s influence extended beyond religious teachings, fostering a spirit of self-reliance and economic independence among the people of Kashmir, leaving a lasting legacy that continues to shape the region’s cultural and economic landscape.
Handicrafts have been a cornerstone of Kashmir’s economy for centuries, significantly contributing to its economic stability and cultural heritage. The intricate and exquisite craftsmanship of Kashmiri artisans has gained international acclaim, creating a strong demand for their products worldwide. Key handicrafts such as carpet weaving, papier-mâché, Pashmina shawls, wood carving, and embroidery have become synonymous with the region’s identity. Carpet weaving, introduced by Shah Hamdan in the 14th century, developed into a thriving industry, providing employment to thousands and generating substantial revenue through exports. By the early 21st century, the carpet industry alone employed around 300,000 people and generated approximately $200 million annually. Pashmina shawls, known for their softness and intricate designs, became luxury items sought after by global markets, with exports valued at around $160 million annually as of 2020, once upon a time it was fashion among European elites. Papier-mâché, with its vibrant colors and detailed artwork, appealed to art collectors and tourists alike, contributing significantly to the local economy. The handicraft sector overall provided livelihoods to over 700,000 artisans and craftspeople in Kashmir, according to government estimates.
This sector accounted for about 8% of the region’s Gross Domestic Product (GDP), underscoring its economic importance. These crafts not only provided livelihoods to many families but also encouraged the preservation of traditional skills passed down through generations. The economic benefits from handicrafts led to the development of related industries, such as raw material supply and marketing, creating a ripple effect that strengthened the overall economy. Moreover, the export of handicrafts played a crucial role in establishing Kashmir’s trade relations with various countries, enhancing its economic prospects on a global scale. The handicrafts industry in Kashmir is facing a severe decline, with the market shrinking rapidly and artisans losing their livelihoods. According to recent data, the number of artisans involved in traditional crafts has decreased by nearly 30% over the last decade, with carpet weaving alone witnessing a drop in workforce from 300,000 to 200,000. The overall revenue from handicrafts, which was around $200 million annually in the early 2000s, has now plummeted to approximately $100 million. Consequently, the income of local artisans has seen a sharp decrease, with many earning less than $2 per day, well below the poverty line. Despite some infrastructure development on the civilian side, the economic benefits have not trickled down to the artisans, leading to increased poverty levels. The per capita income in Kashmir, which stood at $1,300 in 2010, has only marginally increased to $1,500 in 2020, reflecting the economic distress and growing impoverishment among the population.
This decline in the economic condition in the Kashmir Valley is attributed to several factors, including the influx of non-local laborers, who now constitute about 40% of the workforce in certain sectors, draining economic resources out of the state. While exports from Kashmir’s handicrafts sector, which were valued at around $200 million annually in the early 2000s, have significantly dropped to approximately $100 million, the imports into the state have remained much lower, further exacerbating the economic disparity. Despite the high export potential, the local economy suffers due to the outflow of earnings and the lack of reinvestment in the local workforce. This economic imbalance has led to reduced income for local artisans and a weakened economic foundation for the region. Note that the data figures can vary from agency to agency as there is no scientific method used to extract this kind of data in the state and particularly in the valley.
Let’s learn about some simple solutions to the economic problems in Kashmir. One important factor to consider is the region’s six-month-long winter, which makes mobility and transport nearly impossible, especially in the villages. This extensive indoor time can be utilized for manufacturing goods, particularly in the electronics and service sectors, by adopting the “Shah-i-Hamdian model of socio-economic development”. The low temperatures and high electricity potential in the state, which is both cheap and abundant, make it an ideal location for industries like electronics and pharmaceuticals. To capitalize on these advantages, Kashmir needs a skilled workforce and greater exposure to modern manufacturing techniques. Here, the government can play a crucial role by providing training programs, vocational education, and platforms for artisans and workers to develop the necessary skills. Establishing industrial zones and offering incentives for companies to set up operations in the region could also stimulate economic growth. By harnessing the natural advantages of the area and equipping the local population with the required skills, Kashmir can transform its economic landscape, creating sustainable livelihoods and reducing poverty.
Jammu and Kashmir possess significant potential for electricity generation, particularly through hydropower, owing to its abundant water resources from rivers like the Jhelum, Chenab, and Indus. As of 2023, Jammu and Kashmir have an installed hydropower capacity of approximately 3,500 MW. The estimated hydropower potential is around 20,000 MW, with a large portion still untapped. This offers a tremendous opportunity for expansion, some serious steps must be taken to capitalize the resources and generate more electricity. Key projects include the Baglihar Hydroelectric Power Project (900 MW), Kishanganga Hydroelectric Project (330 MW), and Dulhasti Hydroelectric Project (390 MW). The region also has significant solar energy potential, especially in the Ladakh area, which receives high solar radiation. Ladakh alone is estimated to have a solar potential of around 33 GW. Although less explored, there are some areas with wind energy potential, particularly in the mountainous regions. Summarizing the paragraph, I am proposing the argument that Kashmir has vast opportunity and potential to generate clean electricity for industrial consumption.
Jammu and Kashmir’s manufacturing sector is diverse, encompassing food processing, textiles, and handicrafts. The region’s strategic location and availability of raw materials provide a competitive edge. Jammu and Kashmir is renowned for its saffron production, contributing about 90% of India’s total saffron output. The annual production is around 15-20 metric tonnes. The region is a major producer of apples, with an annual production of approximately 2.2 million metric tonnes, making it the largest apple-producing state in India. Other notable fruits include cherries, apricots, and walnuts. Known for their luxurious quality, Pashmina shawls from the region have a significant market. The annual production is estimated to be around 15,000-20,000 kilograms. Jammu and Kashmir produce high-quality silk, with an annual raw silk production of around 135 metric tonnes, although once upon a time Kashmir silk production was much higher.
The pharmaceutical industry in Jammu and Kashmir is emerging as a significant sector due to its conducive climate and availability of medicinal plants. The region has around 50 pharmaceutical manufacturing units, producing a wide range of medicines. The availability of diverse medicinal herbs in the region offers significant potential for growth in the production of herbal and Ayurvedic medicines especially the lifesaving drugs (Atropine). The clean climate and atmosphere is also suitable for allopathic medicine production. With the government’s support, there are increasing investment opportunities in establishing new pharmaceutical units and expanding existing ones. Jammu and Kashmir are globally recognized for their exquisite traditional crafts, which include carpets, shawls, and papier-mâché items.
The “Shahi-i-Hamdan Model of Socio-economic Reforms” suggests leveraging the winter months for mass production and manufacturing of goods, which can then be exported in the summer. The idea is to utilize the winter months, when agricultural activities are limited, to focus on manufacturing. This ensures that the workforce remains engaged and productive year-round. This approach utilizes the often idle winter period to boost economic activity. By producing goods in winter, these can be stockpiled and ready for export in the summer when transportation and market conditions are more favorable. Enhanced railway connectivity plays a crucial role by facilitating the transportation of Kashmiri goods outside the state, even during harsh winters. Additionally, the government should support small home-based manufacturers by purchasing their products and managing their sale outside the region. Alternatively, adopting the Chinese model of business, which emphasizes efficient production and export strategies, can further bolster trade and economic growth in Kashmir. The government could play a pivotal role by purchasing goods from small manufacturers, ensuring they have a market and facilitating their entry into larger, external markets. This refers to adopting strategies similar to China’s, which focus on mass production, government support for small businesses, and robust export mechanisms to drive economic growth.
The author is a Politician, Writer, and Technologist and can be reached at shadabpeerzada@yahoo.com