It is widely established that investments in physical infrastructure play a central role in promoting economic activity and job creation. Given that difference in growth performance of Indian states can, to a great extent, be explained by investments in physical infrastructure, this chapter briefly discusses the status and challenges related to transportation, power, communication, and access to credit in J&K. The chapter further entails a comprehensive discussion of challenges that have impaired the growth of horticulture, handicrafts, and tourism – the three major drivers of J&K economy. It argues that reintegration of its traditional economy and enabling the state to regain its competitive edge can offer tremendous prospects for growth and address, even if in a limited way, its jobs challenge.
KeywordsJ&K Physical infrastructure Transportation Power Communication Access to credit Traditional economy Competitiveness Horticulture Handicrafts Tourism
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