(Bloomberg) -- Prime Minister Narendra Modi's government has approved an incentive program worth 284 billion rupees ($3.8 billion) to bring investments to India's federally-controlled territory of Jammu and Kashmir.
The aim of the program is to create jobs and attract investment to the region, the government said in a statement.
Jammu and Kashmir formally ceased to be a state on Oct. 31, 2019 and was divided into two federally-controlled territories after Modi ended seven decades of autonomy in the restive region, promising ‘a new era' of development opportunities.
The Himalayan region's economy, which depends mostly on farming, handicrafts and tourism, has been hard hit by movement and communications restrictions imposed by the federal government since it was stripped of its special autonomous status.
It has also suffered from poor infrastructure, falling tourist arrivals, a lack of investment and slow industrial growth, driven partly by a long-running insurgency.
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