Amid the turbulence caused by the recent horrific terrorist attack in the Pahalgam area of Jammu & Kashmir, uncertainty looms over the region’s fast-growing startup ecosystem. While several industries in J&K have experienced an uptick in momentum in the recent past, the startups ecosystem particularly face an unpredictable investment climate following the ghastly terror attack, which left 26 people, mostly tourists, dead.

The startup industry in J&K has witnessed remarkable growth over the past five years. Official data shows it has recorded a 287% surge in DPIIT-registered startups since 2020. Following the abrogation of Article 370 in 2019, the number of startups grew from 237 in 2020 to 917 in 2024, including 333 women-led ventures. Additionally, 3,476 enterprises have been supported under the Start-up Village Entrepreneurship Programme (SVEP) in J&K.

The startup landscape spans diverse sectors, with construction & engineering accounting for 49% of the total, followed by skill development (12%), oil & gas transportation (12%), and IT consulting (8%). Over 1,600 startups have registered with Jammu and Kashmir Entrepreneurship Development Institute (JKEDI), reflecting a three-fold increase within just one year.

According to a recent Greater Kashmir report, several ventures are taking on increasingly complex challenges and expanding their scope. "It is going to be a tough situation for some time until the normalcy returns, but overall, the business environment has improved significantly, thanks to the government's efforts in boosting investment across industries. I am hopeful that business sentiment will not be hit," says Arun Sharma, who runs a local new-age media venture in J&K.

New Jammu & Kashmir Startup Policy

To further strengthen this momentum, the Jammu & Kashmir government launched the ‘New Jammu & Kashmir Startup Policy 2024–27’ in March 2024. The policy targets the establishment of 2,000 startups by 2027, aiming to position J&K as one of India’s leading startup ecosystems.

As part of the policy, a ₹250 crore Venture Capital Fund is being set up, with an initial infusion of ₹25 crore by the UT administration. This fund is intended to provide early-stage financial support to help viable business models scale. The policy also offers seed funding through JKEDI for prototype development and extends specific incentives to women entrepreneurs.

In addition to UT-level initiatives, the Indian government has also extended steady support to startups in J&K. Under the Fund of Funds for Startups (FFS) scheme, ₹50 crore was cumulatively invested in J&K-based startups through Alternative Investment Funds (AIFs) between 2020 and 2024. Under the Startup India Seed Fund Scheme (SISFS), ₹2.05 crore was approved between 2021 and 2024, with total funding rising to ₹2.55 crore by January 2025.

Similarly, under the Credit Guarantee Scheme for Startups (CGSS), startups in J&K received ₹14.35 crore in collateral-free loan guarantees during 2023 and 2024.

Startups from Jammu & Kashmir are also making a mark at the national level. Genetico Private Limited and GR8 Sports Private Limited emerged victorious at the recently concluded Startup Mahakumbh 2025, clinching top honours in the Startup MahaRathi Challenge, an initiative of DPIIT. Genetico won ₹20 lakh under the HealthTech and BioTech category, while GR8 Sports bagged ₹5 lakh in the Gaming and Sports category.