New Delhi: Shafia Shafi's online business came to an abrupt halt due to repeated internet shutdowns by the Indian authorities after Kashmir's autonomy was revoked.

She, along with many other young business owners, struggled for 17 months before high-speed connections were reinstated in February 2021. At least 15 orders are placed by Shafi every month, which he claims is enough to keep him "busy all the time".

Today, the internet is my most valuable tool, according to Shafi, who combines clay sculpture with calligraphy and papier mache, a traditional Kashmiri craft.

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“There was no internet or phone service during this lockdown or COVID-19 lockdown in 2019 which severely hampered my newly launched business.”

In the last one year, Shafi's Instagram page, where she takes commissions, has garnered close to 56,000 followers. She is not the only artist in the field to use the internet to seek business opportunities.

To maintain control of the restive Muslim-majority region where separatists have long fought Indian rule, the Indian government revoked Kashmir's autonomous status in August 2019 and split the state into two federal territories.

The crackdown was followed by the detention of local leaders, severe restrictions on freedom of movement and communication blackouts in the Kashmir Valley. The internet was offline until the resumption of 4G mobile data services in February 2021.

Internet-based startups have proliferated in Kashmir in the last two years, according to Mir Shariq Mushtaq, owner of Srinagar-based Bizlaw, which provides consultancy services to start-up companies.

However, the boom is also responsible for the revival of older businesses that had to cease operations due to the shutdown.

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"The internet was down for a very long time, which not only hurt my business but any business that relies on online customers," Mushtaq said. Because of this there has been a tremendous explosion in internet based startups.

Despite the fact that his clientele is expanding and his business is now the sole provider of services to 200 of the 1,800 government-registered startups in the region, many of the young entrepreneurs he talks with are "unsure political situation".

The Indian government listed improving the local economy and attracting outside investment as its justification when amending the constitution to revoke Kashmir's autonomy. But according to Home Ministry data, there has been a sharp decline in investment in Kashmir since then.

The total amount invested in this sector in 2021-22 was $45 million, less than half of that in 2017-18. The uncertainty of the Valley discourages other investors, according to 29-year-old Malik Adil, founder of Groxery, Kashmir's first online grocery delivery service.

“I am burning through my own money, and no investors are willing to invest money in the Valley. If my brand of online shopping was present in other regions of India, it would fetch millions of dollars. In Kashmir, a project It is not easy to start.

We are motivated because of our emotional connections and the feeling of giving back to the society. Since the internet became reliable two years ago, Adil has been able to reinvent himself in the market, and his app has been downloaded over 130,000 times in the region.

However, internet connectivity is a requirement to use Adil's service.
"If there is no internet tomorrow, I will have to close my business," he said. "The most important component of my business is the Internet."

While Sheikh Ashiq, president of the Kashmir Chamber of Commerce, acknowledges that most startups in Kashmir are funded by private investors or bank loans, he is optimistic about the future of the industry.

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"The situation is not as dire as it was a few years ago," he told Arab News. "Things are improving, and the government has also recognized the economic loss caused by internet shutdowns,"