Mohammad Hanief
Industrialization plays a significant role in employment creation of any economy. Large-scale and heavy industries are not present in an acceptable statistics due to poor infrastructure and climatic disadvantages in Jammu and Kashmir. Only Micro, Small and Medium enterprises are growing in the union territory. The availability of raw material, cultural and climatic conditions is supporting those enterprises in growth. Small scale industrial units are manufacturing food products, beverages, silk, bricks, plastic products etc.
Jammu & Kashmir has a vast natural resource base which has enabled it to develop land for cultivating major fruits. With varied agro-climatic conditions, the scope for horticulture is significantly high. Food processing and agro-based industries (excluding conventional grinding and extraction units) thrives as Jammu and Kashmir has an ideal climate for floriculture and an enormous assortment of flora and fauna.
Handicrafts are world famous and the traditional handicraft industry has emerged as a large industry. Due to its large employment base and export potential, the industry has been receiving priority attention of the government. Jammu and Kashmir is also famous for its small-scale and cottage industries such as carpet weaving, silks, shawls, basketry, pottery, copper and silverware, papier-machie, and walnut wood.
Topographically the union territory Jammu and Kashmir is divided into two regions i. e Jammu and Valley of Kashmir The Jammu region of J&K has a sub- tropical climate and the summer is hot. The temperature starts soaring in the month of March and is at its peak in the month of April. The maximum temperature in summer can go as high as 45degree Celsius. Kashmir is quite pleasant with the temperature varying from 14 to 30 degree Celsius.
Jammu and Kashmir is achieving new bench marks in Infrastructure development. Basic connectivity, provision of potable water for all, 24-hour quality power supply are among the priority Sectors. The road network is extended to all the habitations with population over 250 persons as per 2001 Census, facilitating growth and development across the Union Territory. World-class National highways, expressways, tunnels, bridges, flyovers, ring roads are coming up. J&K’s Rail link is expected to be connected to rest of India shortly. Airports are also being upgraded. The Urban development is high on agenda, smart city projects are being implemented in the capital cities of J&K. The power generation capacity is likely to be doubled in 4 years and tripled in next 8 years.
Industry plays a vital role in development of a country. The industrial sector is the main vehicle for accelerating economic activity besides providing employment to the unemployed youth. Jammu and Kashmir started the process of planned Industrialization in 1970 with establishment of directorate of Industries and Commerce.
The industry sector has been declared as the main vehicle for accelerating economic activity besides providing employment to the educated unemployed youths in the region. Development of industrial infrastructure has been the focus of special attention during the last few years. At present 51 industrial estates are in place and many more are in the process of being developed across Jammu and Kashmir. The efforts made over the past few years have started bearing fruits Presently, registered Small Scale Industrial units are operational and have provided employment. Medium and Large Industrial development always remains a thrust area in the governments agenda.
Annual Survey of Industries (ASI) of the government plays a pivotal role in assessing and evaluating the dynamics in the composition, growth and structure of the registered units in the manufacturing sector. The structure and function of the industrial sector is an important perspective of the Indian Economy. The well-being of the industries depends sternly on the formulation and promotion of industrial policies framed by the policymakers. To frame suitable industrial policies the policymakers need to be conscious of the quantified aspect of the existing scenarios in the industries in the country and it is the survey results of the ASI which serves the desired purpose.
The market size of food processing sector in India is estimated to reach US$ 1,274 billion in 2027 from US$ 866 billion in 2022, backed by changing lifestyle and food habits due to rising disposable income and urbanization.
The food processing sector has grown substantially, averaging an annual growth rate of around 7.3%, during 2015-2022. The sector has contributed 10.54% of the gross value added (GVA) in Manufacturing and 11.57% of GVA in Agriculture sector in 2020-21.
India is the fifth largest economy in the world and expected to be the fastest-growing economy among major G20 countries, with GDP growth estimated to be around 8% in FY24. The food processing sector has become a key contributor to India’s economy over the past few years, thanks to progressive policy measures by the Ministry of Food Processing Industries (MoFPI).
The sector has performed exceptionally well with an impressive average annual growth rate of 7.3% from 2015 to 2022. It has significantly contributed to Gross Domestic Product (GDP), employment, and investment, accounting for 10.54% of gross value added (GVA) in Manufacturing and 11.57% in Agriculture sector in 2020-21. GVA in Food Processing sector has increased from Rs. 1.61 lakh crore (US$ 24.60 billion) in 2015-16 to Rs. 1.92 lakh crore (US$ 24.43 billion) in 2022-23 (as per First Revised Estimates of Ministry of Statistics and Programme Implementation).
India’s diverse agro-climatic conditions allow for abundant production of cereals, pulses, fruits, and vegetables, making it a leading producer of various foods. India was a global leader in milk production contributing ~25% to global milk production, in 2022-23. The country ranked second in vegetables and fruits and egg production and fifth in meat production, respectively, in 2022-23.
Additionally, India is the largest producer of spices in the world, with 11.26 million tonnes of major spices produced in 2022-23, as per the third advanced estimate by spices board of India. The food processing industry in India is still in its early stages, contributing less than 10% to the total food output. According to a Deloitte study on Level of Food Processing in India, processing levels were at 2.7% for vegetables, 4.5% for fruits, 15.4% for fishery, 21.1% for milk, and 34.2% for meat in 2020-21.
A strong food processing industry is essential for our nation to tackle food and nutritional security issues. Processed food offers convenience, extended shelf life, easy transport to remote areas, and improved accessibility, serving as a valuable source of nourishment. Additionally, it offers our farmers increased opportunities for better price realization and expanded selling prospects.