With ₹1.75 lakh crores lying in banks, J&K has enough private equity. Investor and business sentiments are to be bridged

By: Shabir Handoo (IRS retired)

Private Equity in Kashmir is still a road less taken.

Kashmir isn’t short on capital, just look at the CASA balances in our banks, crossing ₹1.75 lakh crores. Yet, early-stage startups, MVP builders and idea-stage ventures are starved of risk capital.

The problem isn’t just investor reluctance, it is deeper.

Private equity takes a back seat while real estate, SIPs, and mutual funds dominate. But why?

The ecosystem hasn’t matured enough to build investor confidence in Kashmir.

My experience and wide engagements in this area tells me that investment opportunities are not well-structured or visible. Most critically, it is a mindset problem rooted in a 30+ year grant and donation culture.

Too often, private capital is treated like aid — no obligation to return, no accountability. This culture of entitlement discourages genuine investors who are already wary of systemic defaults and unclear recovery mechanisms.

Here is the truth: Capital isn’t meant to get stuck. Economies grow when money moves, multiplies, and returns, creating a cycle of opportunity for many.

My view for all potential borrowers is this: Private equity is not a donation. It is trust capital. Honouring your commitments isn’t just legal, it is ethical.

And message to investors? Let us build frameworks, structure the deals, and encourage compliant founders. The potential is massive but it needs our collective belief and discipline.

Kashmir’s startup ecosystem is ready to grow. Let us ensure capital flows ethically and impactfully.

The author is Business Strategy and Structural Consultant; Co-founder, Kashmir Angel Network