Number of operational cos in Jammu & Kashmir jumps 3-fold over 5 years

New Delhi: Firms rushed to arrange new companies in J&Okay up to now 5 years, with the tally of operational entities within the union territory surging almost threefold in the course of the interval, coinciding with the abrogation of its particular standing. Consultants, nonetheless, say the Pahalgam attack and fears of an India-Pakistan warfare might damage investor sentiment within the brief time period.J&Okay housed 8,168 ‘lively’ or operational corporations as of March 2025, up from 3,293 as of March 2020, and a couple of,318 as of March 2015, confirmed newest company affairs ministry information.

Lengthy-term Biz Prospects Intact
It presently accounts for the second-highest variety of operational corporations amongst hilly states and UTs in India, barring Uttarakhand with 12,946 corporations.

Regardless of the most recent considerations over J&Okay’s funding local weather within the brief time period, central authorities officers reckon that the area’s robust long-term progress prospects – which had attracted a number of corporations thus far – stay intact and can proceed to drive financial exercise. The Pahalgam assault claimed 26 lives, stoking widespread anger in India. The Modi authorities has blamed Pakistan for the latter’s steady assist to spreading terror actions in India. Officers stated a sustained improvement push by the Centre, drop in general terror incidents because the 2019 repeal of Article 370 regardless of the most recent assault, new incentive schemes, and heightened efforts by native authorities to handle companies’ considerations have lured traders into J&Okay in recent times. To make certain, the variety of contemporary firm incorporations in J&Okay fell to 1,380 in FY25 from 1,433 the yr earlier than, and a document 1,756 in FY23.

A senior official, nonetheless, attributed the moderation to the bizarre surge in FY23, terming the present state of affairs as a part of “normalisation”. “The FY25 numbers are nonetheless nicely above the historic development,” the official emphasised. The federal government arrives on the variety of “lively” corporations after excluding these already closed or dealing with liquidation or beneath the method of getting their names deregistered from these integrated. J&Okay presently extends a variety of incentives to corporations to arrange store there. These embody capital funding assist, curiosity subvention on working capital loans, and incentives linked to the products and providers tax (GST).