J&K industrial push broadens as startups, MSMEs deepen investment cycle

Jammu and Kashmir’s industrial expansion is beginning to move beyond large factory investments, with a rapid rise in startups, formalised small businesses and supporting institutions pointing to a broader effort to build an enterprise base in the Union Territory, government data showed.

The number of registered start-ups rose to 1,306 in the financial year 2025-26 from 69 in 2020-21, an increase of more than 18-fold. As many as 816 start-ups were registered in the latest year alone, while more than 200 were led by women, the data from the J&K Department of Industries and Commerce showed.

The government’s Startup Policy 2024 has provided funding support to 25 start-ups and four incubators.

The expansion coincides with a sharp increase in industrial investment. J&K recorded investments of ₹5,824.42 crore in 2025-26, up from ₹4,145 crore a year earlier and more than twice the ₹2,153 crore recorded in 2022-23.

But the investment pipeline suggests the current cycle could extend further.

Some 312 industrial units involving ₹7,864 crore in investment have completed at least half of their groundwork and are expected to begin production during 2026-27, according to the government data.

Three major projects in poly films and beverages have already started production, with investments of ₹1,215 crore, ₹830 crore and ₹666 crore respectively.

Six other large projects, are expected to commence production during 2026-27.

The government said 390 of 440 units registered under the New Central Sector Scheme for J&K had already begun production. The scheme, launched in 2021 with an outlay of ₹28,400 crore, has been a major driver of the investment cycle.

The broader change is visible in the small-business economy as well.

According to official data, registration on the Udyam platform, which brings micro, small and medium enterprises into the formal economy, increased to 6.35 lakh in 2025-26 from 24,000 in 2021-22. The government has set a target of formalising 7.10 lakh MSMEs by 2026-27.

It has also established an MSME Health Clinic aimed at identifying distressed businesses and providing sector-specific interventions, while an agreement with the National Stock Exchange is intended to help eligible J&K companies explore access to capital markets.

The number of cooperative societies has risen to 7,535 in 2024-25 from 300 in 2020, the data showed.

J&K has also improved its business-reform indicators. It recorded full implementation under the 2024 Business Reforms Action Plan and ranked fifth among states and Union Territories. Its position in the Export Promotion Index rose to second among small states and UTs in 2024 from 17th in 2022.

The government has also highlighted employment generation alongside investment.

“Under the Prime Minister’s Employment Generation Programme, 7,820 units were established in 2025-26 with margin-money support of ₹155 crore, creating employment for 62,560 people”, official data shows.