The Cycle That Haunts Kashmir’s Business Dreams
By: Javid Amin | 15 September 2025
Kashmir has always been a land of resilience. Its people have survived political upheaval, harsh winters, lockdowns, and communication blackouts. Yet when it comes to business, the Valley’s story often reads like a cycle of collective hope and collective despair.
Since the early 1990s, every small spark of opportunity has triggered a stampede of imitation. One PCO (STD/ISD booth) in the neighborhood does well? Within months, every street has five. A handful of Toyota Sumos ply profitable passenger routes? Within years, fleets choke the Valley’s roads. A boom in tourism fills a few hotels? Entire families sell property, gold, and take loans to construct hotels and guesthouses—only to leave them empty after unrest or downturn.
This cycle of herd mentality has cost Kashmir billions in wasted investment, left scars in the form of ghost hotels, rusting vehicles, and failed restaurants, and—most tragically—crippled the region’s entrepreneurial imagination.
This feature takes a deep dive into this phenomenon: its history, its costs, and—most importantly—how Kashmir’s next generation can break free and build businesses that thrive in uncertainty rather than collapse under it.
The Pattern of Collapse: A Timeline of Herd Mentality
Let us trace Kashmir’s business evolution over the last three decades. The pattern is clear: a spark, a stampede, a bust.
| Boom | Reaction | Bust |
|---|---|---|
| PCO/STD booths (1990s) | Every mohalla had 4–5 booths | Mobile phones made them obsolete overnight |
| Transport (Sumos, 2000s) | Everyone bought passenger vehicles, often on loans | Oversupply, fare wars, many drivers bankrupt |
| Tourism hotels & taxis (2005–2015) | Families sold land, mortgaged homes, built hotels, guesthouses, bought taxis | Unrest, highway closures, and cancellations left hotels deserted |
| Restaurants & cafes (2016–2020) | Youth rushed to open food outlets in Srinagar, Anantnag, Baramulla | Market saturation, poor service, low spending power killed many ventures |
Each cycle tells the same story: excitement followed by collapse, leaving behind not just financial ruin but emotional devastation.
The Cost of Conformity
01. Emotional Toll
In Kashmir, every failed venture is not just a statistic—it’s a family tragedy. Parents sell jewelry, families part with ancestral land, and youth abandon education to chase “the next big thing.” When these ventures collapse, they don’t just lose money—they lose dignity, morale, and trust in business itself.
02. Financial Ruin
Loan defaults are common. EMIs pile up, credit histories are blacklisted, and banks become reluctant to finance fresh ventures. Many youth end up leaving entrepreneurship altogether, seeking government jobs instead.
03. Urban Decay
Drive through Srinagar or Pahalgam and you will see the relics of failed herd ventures: half-built hotels, deserted restaurants, and rusting fleets of taxis. These are not just failed businesses—they are urban scars.
04. Lost Innovation
Every time the herd chases one sector, countless original ideas die in silence. Brilliant youth who could have built IT solutions, cultural startups, or logistics companies instead end up in copycat hotels or restaurants.
Why Kashmir Is Not a Normal Market
The root cause of herd-driven collapse is a failure to recognize that Kashmir is not like Delhi, Mumbai, or Bangalore. Its economy is shaped by unique conditions:
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Volatility: Frequent shutdowns, curfews, and communication blackouts can paralyze entire sectors overnight.
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Seasonality: Tourism, one of the biggest industries, peaks for only 4–5 months a year.
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Infrastructure Fragility: The Srinagar–Jammu highway collapses multiple times a year. Flights are expensive and rail connectivity is incomplete.
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Political Uncertainty: Fear of unrest, policy changes, and security concerns keep investors cautious.
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Social Pressure: Families push for “safe” options by copying others, discouraging risky innovation.
👉 The conclusion is clear: what works elsewhere may not work here. Success in Kashmir demands localized, adaptive, resilient models—not copy-paste business plans.
What Thinking Differently Looks Like
So what should Kashmir’s next generation do? Instead of chasing the herd, they must look for gaps—problems unique to Kashmir that need solutions. Here are promising areas:
01. Micro-Logistics & Cold Chain
Apples rot every year on stranded highways. Saffron loses value due to poor storage. The solution lies in:
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Cold-storage containers at orchards.
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Railhead logistics connecting farmers directly to Delhi markets.
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Farmer-to-customer e-commerce platforms.
Startups like FastBeetle have already shown how local delivery can thrive even under shutdowns.
02. Eco-Tourism & Cultural Storytelling
Kashmir doesn’t need more concrete hotels. It needs authentic experiences:
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Homestays in Gurez, Kupwara, or Pahalgam.
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Guided heritage walks of Srinagar’s old city.
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Online platforms that package Kashmiri storytelling, music, and handicrafts for global audiences.
This model requires less capital and offers resilience because authenticity never goes out of demand.
03. Digital Services
Despite fragile internet, demand for digital services is exploding:
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EdTech: Platforms offering coaching, remote learning, and skill training.
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HealthTech: Mental health apps addressing rising stress, especially among youth.
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E-commerce: Direct-to-consumer platforms for Kashmiri handicrafts and apparel.
Kashmir Box has already taken local crafts global—others can replicate this model in new verticals.
04. Hyperlocal Delivery & Repair
Kashmiris often wait days for basic services. The gaps are opportunities:
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Hyperlocal delivery of groceries, medicines, and essentials.
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On-demand repair services for appliances, vehicles, and electronics.
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Mobility solutions using electric scooters or shared services.
Small, agile ventures in this space can scale without massive investments.
05. Renewable Energy & Sustainability
Frequent power cuts and reliance on diesel generators create demand for:
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Micro-solar grids for villages.
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Small-scale hydropower for remote areas.
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Energy-efficient heating solutions for winters.
This sector not only addresses a real need but also attracts global interest in climate-friendly projects.
Case Studies: Breaking the Pattern
01. FastBeetle (Srinagar)
Founded by young Kashmiris, FastBeetle started as a logistics startup during shutdowns. They delivered essentials door-to-door when everything else failed. Today, they connect businesses, farmers, and customers across the Valley.
Lesson: Success comes from solving real, local problems—not copying outsiders.
02. Kashmir Box
This e-commerce platform took Kashmiri handicrafts and gourmet products directly to global consumers. Despite unrest and internet bans, it found ways to sustain and grow.
Lesson: Go digital, go global—but stay rooted in Kashmir’s unique identity.
03. Eco-Homestays in Gurez
When big hotels in Pahalgam and Gulmarg struggled, small families in Gurez Valley converted 2–3 rooms into eco-friendly homestays. Tourists loved the authenticity.
Lesson: Low-cost, locally-rooted tourism can outlast big, debt-driven hotels.
Mindset Shift: From Scale to Strategy
The biggest change Kashmir needs is not just in business models but in mindset.
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In Delhi or Mumbai, success means scale.
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In Kashmir, success means resilience and strategy.
Instead of asking “What’s trending?”, Kashmiri youth must ask:
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What problem can I solve here?
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What resources are underutilized?
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What model works even in shutdowns or crises?
This mindset shift is the true key to escaping the herd.
Roadmap: Building Smarter Ventures in Kashmir
01. Education & Mentorship
Entrepreneurship courses, incubation centers, and mentorship programs can help youth explore ideas beyond the herd.
02. Financial Reforms
Banks must design micro-loans tailored for volatile markets. Risk-sharing models, insurance, and cooperative financing can protect entrepreneurs.
03. Infrastructure
Better highways, internet stability, and cold storage facilities are essential to create a reliable business environment.
04. Community Support
Instead of mocking failures, society must celebrate risk-takers. Cultural change is key: innovation must become aspirational.
Final Word: Build for the Soil You Stand On
Kashmir doesn’t need more hotels, taxis, or restaurants. It needs visionaries who see beyond the herd.
The next generation must recognize that in a fragile economy like Kashmir, survival is not about chasing trends—it’s about building businesses that are adaptive, resilient, and locally rooted.
👉 Don’t follow the herd. Study the terrain. Understand the gaps. Build what’s missing, not what’s trending. Because in Kashmir, true success is not about running the fastest with the crowd—it’s about daring to walk alone, in the right direction.
