The State of J&K is not a highly industrialized State. Main industrial activity is concentrated in the Jammu and Kathua districts of Jammu division. This is mainly because Jammu is the only railhead, where loading and unloading of raw material becomes easy and less cumbersome as compared to Kashmir region where transportation cost is higher.
However, the State is on the path of industrialization despite its topographical limitations. The Industry sector has been declared as the main vehicle for accelerating economic activity besides providing employment opportunities to the unemployed educated youth in the State. To attract investment, the State government has come up with a new eco-friendly industrial policy in 2004, which is valid until 2015. The industrial policy is designated to promote rapid industrialization and has evoked a great deal of interest in the private investment. The policy has slew of incentives in the form of subsidies for all sorts of industries, especially for small-scale industries to make them capable of competing in the present market. The policy also lays emphasis on promoting industries based on local raw materials and skills. The State has set up two industrial growth centers - one in Samba, Jammu and other in Lassipora, Pulwama with the assistance of Central Govt. under the centrally sponsored schemes.
It is expected that extending rail link upto Srinagar-Baramulla would assist industrial sector to expand and some problems like lack of raw material and marketing facilities would be addressed to a great extent.
The key industrial activity in J&K includes:
- Handloom & Handicraft
- Mineral based Industries.
- Gem & Jewelry
- Information Technology
The key industrial clusters are located at:
- Industrial Complex Bari Brahmana, Jammu
- Industrial Estate, Gangyal, Jammu
- Industrial Growth Centre, Samba, Jammu
- Industrial Infrastructure Development Project (IIDP), Udhampur
- Expert Promotion Industrial Park (EPIP) Kartholi, Jammu
- Industrial Complex Rangreth, Srinagar
- Industrial Complex Lassipora, Pulwama, Kashmir
- Industrial Complex Khunmoh, Srinagar
- Industrial Complex, Zainkot, Srinagar
- Industrial Estate, Zakura, Srinagar
- Industrial Growth Centre, Ompora, Budgam
(Data Source: State of Environment Report, J&K, 2012-13)