Startup Ecosystem in Jammu & Kashmir: Technology, Innovation, and Growth Prospects

Jammu & Kashmir (J&K) is quietly reinventing its economic story. Long celebrated for tourism, handicrafts, and agriculture, the region is now witnessing a new wave of first-generation entrepreneurs and technology-driven startups targeting national and global markets. While largely underreported, this surge in entrepreneurship carries significant implications for regional development and India’s broader innovation agenda.

The numbers tell a compelling story. DPIIT-recognized startups in J&K have grown from just over 300 in 2020 to more than 1,000 by 2025. The J&K Startup Policy 2024-27 aims to support 2,000 startups in the next three years. Yet outside the region, awareness of this entrepreneurial momentum remains limited, reinforcing outdated perceptions about the Union Territory’s economic capacity.

Technology is emerging as the engine of this transformation. Nearly one-third of startups operate in digital and automation-driven domains, including software services, cloud solutions, industrial systems, education technology, and an emerging cluster in defence and aerospace engineering. As these firms scale beyond local markets, technology-driven enterprise is redefining J&K’s economic identity.

A key driver of this shift has been the expansion of the incubation ecosystem. Over a dozen incubators now operate across premier institutions such as IIM Jammu, IIT Jammu, IUST Awantipora, University of Kashmir NewGen IEDC, SMVDU TBI, Central University of Jammu, and SKUAST. These incubators provide mentorship, laboratory access, prototype development support, and early-stage funding pathways, increasingly attracting local talent rather than pushing it outward.

At IIM Jammu, the impact of this incubation ecosystem is evident. “Nearly 80 percent of our incubation applicants are from within the Union Territory, and around 60 percent come from technology backgrounds. This shows the strong entrepreneurial potential and readiness of local talent to build knowledge-driven enterprises,” said Dr. Vivek Sharma, Innovation Officer at IIM Jammu. This demonstrates that with sustained institutional and financial support, the region’s entrepreneurs are well-positioned to create impactful startups.

The journey of Apstam Technologies, founded by Kathua-based Kanav Sharma, underscores the potential of structured incubation. Initially focused on CNC and VMC fixtures, robotic grippers, and power tools, Apstam leveraged guidance from the University of Kashmir NewGen IEDC for prototype development, technology validation, and regulatory compliance. Today, it is the only startup from J&K to win an iDEX Challenge under the Ministry of Defence and is developing a next-generation Ground Power Unit for the Indian Air Force’s Apache helicopters, designed for extreme high-altitude and cold conditions. This illustrates that innovation from J&K can be both viable and nationally strategic.

Despite these advances, challenges remain. Startup-specific industrial infrastructure is limited, private investment is scarce, and the continued outmigration of skilled graduates erodes the local talent base. While government initiatives are well-intentioned, the current allocation of ₹50 crore under startup support schemes is modest and often spread thinly across awareness programs rather than direct venture support. The recently announced ₹250 crore Venture Capital Fund holds promise, but its effectiveness will depend on clear eligibility norms, sectoral priorities, and transparent disbursement mechanisms. With over 1,600 registered startups and growth exceeding 300% since 2020, founders require predictable funding pathways to move from early validation to scaling operations.

Policy interventions must also extend upstream. Introducing entrepreneurship as a formal subject from Class 9 could embed business thinking, innovation, and financial literacy early. School and university-level idea challenges and business plan competitions would normalize entrepreneurship as a credible career choice, particularly for first-generation founders. Strengthening research and development linkages is equally critical, with universities and industries collaborating more closely on product development in manufacturing, defence technologies, and deep-tech sectors. A pan-J&K angel investor network could further improve early-stage funding and foster collaboration between traditional industries and startups.

Agriculture, long a backbone of J&K’s economy, is also benefiting from technology-led innovation. Advances in storage, preservation, and supply chain efficiency through collaborations with apple conclaves and research institutions are helping reduce post-harvest losses. Precision farming tools, sensor-based monitoring, and Variable Rate Technology offer further potential, though scaling these solutions requires sustained government focus on farmer awareness, training, and affordability.

Jammu & Kashmir’s startup ecosystem is no longer experimental; it is emerging as a key economic pillar. With stronger policy execution, clearer funding mechanisms, early entrepreneurship education, and deeper industry-incubator collaboration, the Union Territory can position itself as a credible hub for technology-driven innovation. Such development will not only boost local economic growth but also integrate J&K more firmly into India’s broader innovation and self-reliance agenda. 

• Shivang Mahajan is a industrialist of KC Group and has experience of Co-founding  & Mentoring Startups in J&K.