UNSC discussion about Kashmir: Way forward from an economic perspective

The lack of an outcome of the closed-door discussion on Kashmir in the United Nations Security Council (UNSC) is a diplomatic victory for India. In an implicit criticism of China and Pakistan, Syed Akbaruddin, India’s Ambassador and Permanent Representative to the UNSC, relayed that the UNSC recognized that “Article 370” was entirely an internal matter and henceforth, holds no external ramifications.
 
In effect, all of these reflect India’s growing diplomatic clout coupled with Pakistan’s failure to internationalise the issue. But this should not mean that India can rest on its diplomatic laurels. Truly capturing the benefits of the revocation of Article 370 implies a sound economic development of the state.
 
Behind the decision to revoke Kashmir’s autonomy has lingered the intention of boosting its economy. As PM Modi captures it well in an interview given to the Economic Times, where he states that “the greatest casualty (to the Kashmiris) was the lack of any proper economic avenues to increase earning” and abrogation of these roadblocks i.e. Article 370 and 35 (A)would ensure that people obtain economic opportunities.
 
The Prime Minister also emphasized upon the fact that how Article 370 acted as a stumbling block or impediment in the process of industrialization and concluded that through this revocation, integration with the Indian mainland would boost investment, innovation and outcomes.
 
A pertinent criterion of economic growth is the tide of investments that needs to seep down into the economy. However, investments are unlikely to be forthcoming as long as the state continues to be crippled with unrest. For instance, Kashmir received only $6 million in foreign direct investments between April 2000 and April 2019, the lowest among Indian states. Moreover, the economy, mostly reliant upon agriculture and handicrafts, shows a declining contribution, exacerbated by factors such as vanishing jobs, lower disposable income sand lackluster expansion of the state’s economy.
 
To remedy this crisis, what is required a sustained string of public investments in form of connectivity or power supplies by the Modi administration. For private investments to trickle in, which is still far-fetched given the present crisis at hand, it is important that governments at every level work together by engaging communities in Jammu & Kashmir and Ladakh to ensure that the promises made by the Centre are translated into action.
 
India Outbound
August 27, 2019

 
 

source https://indiaoutbound.org/unsc-discussion-about-kashmir-way-forward-from-an-economic-perspective/