Economy of Jammu and Kashmir - History

History

Hari Singh had ascended the throne of Kashmir in 1925 and was the reigning monarch at the conclusion of British rule in the subcontinent in 1947. One of the conditions of the partition of India imposed by Britain was that the rulers of princely states would have the right to opt for either Pakistan or India or remain independent. In 1947, Kashmir's population was 77% Muslim and it shared a boundary with both Dominion of Pakistan and Union of India. On 20 October 1947, tribesmen backed by Pakistan invaded Kashmir.

The Maharaja initially fought back but appealed for assistance to the Governor-General Louis Mountbatten, who agreed on the condition that the ruler accede to India. On 25 October 1947 Maharaja Hari Singh signed the Instrument of Accession on 26 October 1947 and it was accepted on 27 October 1947 by the Governor General of India. Once the Instrument of Accession was signed, Indian soldiers entered Kashmir with orders to evict the raiders, but they were not able to expel everyone from the state by the time the harsh winter started. India took the matter to the United Nations. The UN resolution asked both India and Pakistan to vacate the areas they had occupied and hold a referendum under UN observation. The holding of this plebiscite, which India initially supported, was dismissed by India because the 1952 elected Constituent Assembly of Jammu and Kashmir voted in favour of confirming the Kashmir region's accession to India. Another reason for the abandonment of the referendum is because demographic changes after 1947 have been effected in Pakistan-administered Kashmir, as generations of Pakistani individuals non-native to the region have been allowed to take residence in Pakistan-administered Kashmir. Furthermore, in Jammu & Kashmir state of India, the demographics of the Kashmir Valley have also been altered after separatist militants coerced 250,000 Kashmiri Hindus to leave the region. Moreover, Pakistan failed to withdraw its troops from the Kashmir region as was required under the same U.N. resolution of 13 August 1948 which discussed the plebiscite.

Diplomatic relations between India and Pakistan soured for many other reasons, and eventually resulted in three further wars in Kashmir the Indo-Pakistani War of 1965, the Indo-Pakistan War of 1971 and the Kargil War in 1999. India has control of 60% of the area of the former Princely State of Jammu and Kashmir (Jammu, Kashmir Valley, and Ladakh); Pakistan controls 30% of the region (Gilgit–Baltistan and Azad Kashmir). China occupied 10% (Aksai Chin) of the state in 1962.

The eastern region of the erstwhile princely state of Kashmir has also been beset with a boundary dispute. In the late 19th- and early 20th centuries, although some boundary agreements were signed between Great Britain, Tibet, Afghanistan and Russia over the northern borders of Kashmir, China never accepted these agreements, and the official Chinese position did not change with the communist revolution in 1949. By the mid-1950s the Chinese army had entered the northeast portion of Ladakh:

By 1956–57 they had completed a military road through the Aksai Chin area to provide better communication between Xinjiang and western Tibet. India's belated discovery of this road led to border clashes between the two countries that culminated in the Sino-Indian war of October 1962. China has occupied Aksai Chin since 1962 and, in addition, an adjoining region, the Trans-Karakoram Tract was ceded by Pakistan to China in 1963.

For intermittent periods between 1957, when the state approved its own Constitution, and the death of Sheikh Abdullah in 1982, the state had alternating spells of stability and discontent. In the late 1980s, however, simmering discontent over the high-handed policies of the Union Government and allegations of the rigging of the 1987 assembly elections triggered a violent uprising which was backed by Pakistan.

Since then, the region has seen a prolonged, bloody conflict between militants and the Indian Army, both of whom have been accused of widespread human rights abuses, including abductions, massacres, rapes and lootings. The army has officially denied these allegations. However, militancy in the state has been on the decline since 1996, also again in 2004 with the peace process with India and Pakistan. Furthermore the situation has become increasingly peaceful in recent years.