Professional Documents
Culture Documents
Ladakh
Unleashing potential
Knowledge Partner
September 2021
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Table of Contents 2
1. Messages 3
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Message
“He who climbs upon the highest mountains laughs at all tragedies,
real or imaginary.” – Friedrich Nietzsche
While tourism has been the most talked about sector of Ladakh, the
region has the capability to be converted into an economic
powerhouse, with the use of sustainable local techniques. This
Though Leadership features an analysis alongside the growth
potential and opportunities available for the below sector.
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Message
Tashi Gyaltson Beyond its natural beauty, Ladakh has a lot of offers to its citizens
and visitors, in terms of Tourism, Agriculture, Energy, etc. A
Chairman,
structured and climate friendly approach to these sectors can
ASSOCHAM Ladakh
unleash the potential of Ladakh region and usher its citizen into the
UT
new era of growth and prosperity, while retaining its nature beauty.
While tourism has been the most talked about sector of Ladakh, the
region has the capability to be converted into an economic
powerhouse, with the use of sustainable local techniques. This
report features recommendations and opportunities available in,
Agriculture and allied industry, Travel and tourism, Handlooms and
handicraft, clean energy (Solar and Hydro).
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Message
Since the days of caravan commerce along the Silk Route, Ladakh
has had a history of business acumen and capabilities. Different
reasons, including political instability, ecologically sensitive zones,
and several other reasons, led to a slowdown in the region's growth.
The Jammu and Kashmir Reorganization Act, 2019, passed by the
Parliament of India, contained provisions to reconstitute Ladakh as a
Union Territory, separate from the rest of Jammu and Kashmir, has
opened a gateway of development and prosperity for the region.
It is now time for Ladakh to realize its true economic and socio-
cultural potential!
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closed during the winter because of heavy to the Ladakh region. The energy shortage in
snowfall in the region. the Ladakh region until 2017 was as high as
95 per cent. There are plans of connecting
The Manali-Leh route is still considered long, more areas of the region to the grid.
and it is blocked for many months each year
due to five high-altitude mountain passes. Development as a Union territory: A very
The third axis to Ladakh, connecting Leh and important characteristic of this region is that
Manali, is now anticipated to be completed by after revocation of Article 370 of the Indian
2025, providing year-round connectivity to the constitution in 2019, Ladakh is a Union
newly created Union Territory. Territory and is governed by the Union
Government of India. Ever since then, there
Connectivity to National grid: The first have been several developmental changes in
component (Leh-Khalste) of the Srinagar- the region which are mentioned in the next
Alusteng-Drass-Kargil-Leh power section.
transmission system was commissioned in
2017, connecting part of Ladakh to the Among other things, the UT status has
National grid. Local micro-hydropower brought a significant change in the
installations with a total capacity of 14 administrative structure with the
megawatts and diesel generators with a functioning of the UT administration,
capacity of 12 megawatts provided electricity directorates, two hill councils and the
Panchayati raj system.
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the average number of wet days from season. The region's agricultural
8 to 20 in just a decade. (this however, community is especially susceptible due to
has happened in the summer season) the unpredictable weather. Water shortage
has shortened their planting season,
o Low winter precipitation: Despite the lowering agricultural yields as a result.
rain, the region is experiencing water Farmers have also resorted to using
chemical fertilisers to boost crop
shortages. Ladakh is a Himalayan
production in the now-reduced sowing
region with peaks reaching over
season, resulting in increased
25,000 feet and a base height of contamination of the region's most
around 8,000 feet. For water, the valuable water bodies.
Ladakhis rely nearly exclusively on
glacier and permafrost melt. Glaciers § Increase in extreme weather events:
have receded in the last 35 years due Several severe weather occurrences, such
to lower snowfall. Between 2013 and as cloud bursts and flooding, have been
2017, Ladakh had a four-year drought linked to fast changes induced by climate
with yearly precipitation deficits change and retreating glaciers, according
ranging from 50% to 80%, with 2017 to studies. As previously noted, the
marking the end of the drought. This temperature in Ladakh has risen by about
has led to water scarcity in the 3 degrees Celsius in the last four decades,
villages. The impacts of climate whereas it has risen by 1 degree Celsius
in the rest of India, making the region
change may also be seen on the
warmer. The increase in temperature
world's highest battleground, the causes more evaporation and, as a result,
Siachen glacier.6 The snout of cloud development in the hills, increasing
Siachen the starting point of the the risk of cloudbursts. Between August of
glacier at the Base Camp has receded 2010 and August 2018, there are close to
by about a kilometre since 2005.7 6 instances of flash floods and cloud
bursts in Ladakh8, that have not only
§ Increase in average temperatures of the caused severe damaged to properties but
region: Increased temperatures are one have also claimed human lives.
of the primary effects of climate change
throughout the planet, and Ladakh has not Further, among other anthropogenic factors
been immune to the phenomena. responsible for above, increase in the influx of
Minimum temperatures have risen by 1 tourists has also led to overexploitation of
degree Celsius in the winter and 0.5 natural resources and pollution which,
degrees in the summer in the last 35 coupled with climate change impacts, is
years, according to one estimate. threatening the ecological integrity of the
According to some recent research, the
fragile ecosystems in the region.
temperature in Ladakh has risen by 3
degrees Celsius during the last four
decades. This has had a severe influence Shortcomings of current tourism led
on the region's snow and rain cycles and growth model
may result in glaciers melting sooner than
expected. The UT of Ladakh has seen a manifold
increase in the number of tourists visiting it
§ Low agricultural yield and changed each year, Leh particularly has emerged as
cropping pattern: Water from glacier melt one of the favourite destinations of not only
has been the sole source of irrigation for Indian tourist but also of foreign tourists. The
80 percent of Ladakh farmers. Only 20% tourism industry accounts for nearly 70% of
of farmers cultivate near the banks of the Ladakh’s total revenue. More than half of
Indus River and irrigate using river water. Ladakh's population, mainly in the Leh district,
However, snowfall has decreased in
relies on the sector for a living.9
recent years and has arrived late for the
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Though tourism in Ladakh has brought a polluting the source of drinking water for
lot of prosperity to the region and local inhabitants.
contributed in reducing the vulnerability of
Ladakhis, it has also led to § Absolute economic dependence on one
overexploitation of natural resources and sector: The sudden rise in this sector has
pollution, which, combined with the effects created a threat of the region’s economy
of climate change, is threatening the and its people being totally dependent on
tourism. The tourism sector in the region
ecological integrity of the region's fragile
has come to a full halt this year owing of
ecosystems. The fast adaptation of the
the COVID-19 epidemic. Everything is
tourist sector to the changing demands of closed, including hotels, guest homes,
visitors has resulted from the growth in stores, cafés, taxi services, restaurants,
demand for tourism in the Himalayas. and other auxiliary industries, and the
individuals who work for them have been
§ Excessive use of water is threatening unemployed for over eight months.
the region’s existence: Most of India
receives rainfall from the South West § Demand for more energy: Tourists
monsoons for a period of about 3-4 demand energy services above what local
months, with an annual average residents require. Cooling, heating,
precipitation being in the range of 850 - lighting, and transportation needs have
900 mm. Being on the leeward side of the been provided primarily by fossil fuels
trans-Himalayan range, Ladakh receives trucked over the Himalayas, adding diesel
just about 100 mm of precipitation in a fumes, coal smoke, and spent oil to the list
year, making the region a cold desert. Due of Ladakh's environmental woes.
to above, for Ladakhis, water is an
extremely precious commodity. They've
grown accustomed to a life in which water Number of tourists
is both limited and precious. According to
327,500
studies, the ordinary Ladakhi consumes
approximately 20 litres of water per day,
but visitors use at least 75 litres.10 With
150,000
growing water demand and drying up of
common taps, locals have long resorted to
digging borewells, using and exhausting 527 20,000
ground water of the region. It is predicted
that the glacier on which Leh depends is 1974 2001 2011 2018
estimated to melt completely in the next
five to six years.
§ Contamination of groundwater:
Traditional Ladakhi water management
and sanitation systems were more in tune
with nature. A compost pit was utilised for
excretory functions, as it is a structure that
does not require the use of water and thus
eliminates the need for sewers or drains.
Until recently, water from streams fed by
glaciers was used for drinking purposes.
However, with the flush toilets used by
approximately 450+ guest houses and
hotels only in Leh, water consumption has
increased manifold. Also, due to a lack of
drainage system, sewage water is being
let into once pristine streams, thereby
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To assess the region’s potential, the below framework for sustainable development has been
devised. The framework analyses the region’s unique characteristics across sectors, namely,
Agriculture and Allied, Travel and Tourism, Power and Energy, and Handloom.
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§ Apricot and Apple- Apricot and Apple – Although Ladakh, has varieties of
The region's two most important fruit crops fruits and vegetables which are unique
are apricot and apple, both of which are to the region and also has an
renowned for their high quality. The
environment which is favourable for
climatic conditions are favourable for the
production of exotic vegetables, coarse
development of high-quality apricot and
apple due to the longer fruiting season, grains etc., due to poor market
bright sky, and significant diurnal linkages, water scarcity and improper
temperature fluctuation during the growing
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products, including on e-commerce portals connected, with the output of one flowing
may then happen under this umbrella. into the input of the other. As can be seen
Adequate marketing strategies will make from above, R&D activities carried out in
rest of the world aware of Ladakh’s high any stage of the value chain has
quality produce and create organic benefitted the overall sector in the region.
demand for its products. Some key areas for research can be high
yielding seed varieties, development of
Launch of a ‘Ladakh Organic Mission’
with a focus of making Ladakh an less water intensive crops, pest resistant
organic certified region like Sikkim. crops, genetically modified crops,
Under this mission, an important biofortification, improved storage,
component will be marketing and processing & logistics and labour-saving
branding of local products. technologies
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Sector 2: Travel and Tourism sector Leh district, is dependent on the industry
as a source of income.
a) Sector Overview:
Ladakh's tourism industry has mostly
The Himalayan region has become one of
grown on a reactive basis. Further, the
India's most popular tourist destinations,
large influx of tourists has caused
offering a diverse range of activities such
significant changes in the region's
as religious, recreational, adventure, and
economy and environment. In most
nature-based tourism. As stated
situations, the local community has had to
elsewhere in the document, the increase
adapt on a regular basis to accommodate
in demand for tourism in the Himalayas
an ever-increasing influx of tourists.
has led to rapid adaptation of the tourism
industry to the needs and wants of the
b) Gaps identified
tourists
§ With every passing day, the impact of
A total of 3,27,366 tourists, including climate change is getting more visible,
49,477 foreigners, visited Leh in 2018, world over. The effects of climate change
marking an increase of over 50,000 are changing ecosystem functions and the
compared to 2017.18 human activities that rely on them. Many
people residing in the mountains are
This development has resulted in facing major challenges as a result of
overexploitation of natural resources and rising air temperatures, melting glaciers,
pollution, which, when combined with the and extreme weather occurrences.
effects of climate change, is jeopardising Tourism as an industry is most susceptible
the ecological integrity of the region's to the impact of climate change in the
region of the Ladakh.
delicate and fragile ecosystem.
§ The increase in demand for tourism in the
Himalayas has led to rapid adaptation of
According to studies, the ordinary tourism industry to the changing needs of
Ladakhi consumes approximately 20 visitors. Therefore, a lot of these
litres of water per day, but visitors use adaptation have been in unplanned
at least 75 litres. manner which has led to the region
operating under tremendous stress which
With growing water demand and drying up is now visible in the form of, water
of common taps, locals have long resorted scarcity, ground water contamination,
to digging borewells, using and exhausting demand for more energy among other
ground water of the region. things.
§ As the tourism economy is centred around
Leh, more than 90% of Ladakhis who
Ladakh officially opened for tourism in
reside outside of this area receive
1974 with 527 tourists visiting the region
relatively little of the economic advantage
(J&K Tourism Department, 2010). Since of tourism. While now off beat tourism has
then the number of tourists have grown also become popular in the region, it still
consistently. The UT of Ladakh has seen benefits those having spare infrastructure
a manifold increase in the number of to host tourists. There is therefore a
tourists visiting it each year, Leh danger of those not participating becoming
particularly has emerged as one of the economically worse off simply by
favourite destinations of not only Indian continuing to live as they always have.
tourist but also of foreign tourists. The § Focus on only summer tourism has
tourism industry accounts for nearly 60% resulted in 3-4 months of very active
of Ladakh’s total revenue. More than half tourist season in the region.
the population of Ladakh, particularly the
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c) Government interventions which will adversary. This however has also given
contribute immensely in unleashing the an opportunity to the administration to
sector’s economic potential: develop several other types of tourism
circuits and products in the region.
§ UT of Ladakh’s tourism policy: There is
a need for the region to have a very The administration can play a very
focused tourism policy. The tourism policy important role in getting Ladakh onto
will reflect the overall development policy the Tourism map of the country and
and focus areas of the region and will shifting its nature of seasonal tourism
ensure that tourism as a sector is very well to a perennial one.
integrated with the region’s priorities.
Some of the different tourism products
After thorough stakeholder which can help unleash the region’s
consultation, Ladakh administration economic potential, without deteriorating
should roll out a comprehensive the ecological balance, include:
tourism policy, focusing on: o Night-sky tourism: According to a
report, nearly seven million people
§ Tourism attraction and activities travelled across the US in 2017 to
§ Various types of accommodation facilities witness the total solar eclipse19, giving
in the region birth to a new concept of Tourism
§ Tourist facilities and services including, called as night-sky or Astro tourism.
setting up tourist information centres, last Due to having 300 plus clear days in
mile connectivity, inter-intra city transport an year, Ladakh is home to many
etc. observatories focusing on different
§ Essential urban and rural Infrastructure celestial bodies in the villages of
facilities including, water supply, power Hanle, Merak etc. Tapping into this
supply, sewerage systems, internet potential, the administration in Ladakh
connectivity etc. has a unique opportunity to start night-
§ Focus should be laid on human resource sky tourism without much
planning and educational programs for infrastructure investment.
those operating in this sector. Training and
development of local youth should be an o Winter tourism: Because of the
important area of focus for the policy. extreme climatic condition, Ladakh has
§ Tourism investment promotion will also become a tourist destination in winters
form a very important part of this policy. for the adventure seeker. And along
Though, through the UT of Ladakh’s with Chadar trek, Snow leopard
Tourism incentive policy launched in 2020, spotting is also very famous in the
the administration has announced Capital region starting from December end till
Outright Investment subsidy which aims at early March. There is however scope
promoting a concept of small and beautiful of developing winter tourism in the
fixed assets in Ladakh based on local region. Winter sports like Snow ski
tradition and architecture, there is scope specially in Zanskar region can be
for attracting more investments through developed. With the opening of
tourism summits and conclave and other Chilling-Padum Road, Ski can also be
business promotion activities. promoted in future to sports
§ Important plans on connectivity, enthusiasts.
communication and transport should also
be covered in the policy. o Adventure and sports tourism:
Ladakh's rugged topography in the
§ Development of new tourism products: Himalayan foothills offers a variety of
Tourism has been the most adversely adventure sports activities that are
affected sector due to the outbreak of guaranteed to please any adventure
COVID-19 pandemic across the globe. lover. To explore the potential of this
Those engaged in this sector in Ladakh segment, there is need for the
have also severely felt the impact of this administration to develop adventure
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help hotels to reduce their costs, it will civic services. Endless traffic jams, lack of
also boost the local economy and culture. regular water supply, poor waste
Sourcing locally will also give tourists the management, and increasing pollution are
real flavour of Ladakh. causing enormous difficulties to the
tourists as well. The suggested new
§ Skill development of locals: As the tourism products will ensure all round
tourism industry in Ladakh has grown on tourism in the region resulting in tourist
reactive basis, it has not given local youth influx, which is evenly spread out
an opportunity to be adequately trained for throughout the year, giving nature time to
the hospitality industry. Further because recover.
the tourist season in Ladakh is
concentrated within a few months, many
hotels/ agencies prefer to hire migrant and
contractual employees because they can
expand and contract their staff as demand
changes. Due to all of the above, very
employers make concentrated effort to
train the youth. It is therefore
recommended for hotels to invest in
developing competencies required to
professionally carry out the duties
associated with the great variety of jobs in
the tourism industry.
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the private sector can do to aid the energy emissions (25 percent of 2019 greenhouse
transition. Some of them are: gas emissions)26.
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§ Research and development: The sector The region of Changthang has also witnessed
can undertake the activity of setting up the rearing of Pashmina goats for many
research institutes in the country to centuries. As all of these activities form the
strengthen the activities of rearing, ecosystem of Ladakh, their survival is very
shearing, washing and processing of important for the ecological balance of the
Pashmina wool. This will also give the region. The above interventions will from
Pashmina sector of the region exposure to Government and private sector will also
best practices followed throughout the reduce the migration of youth from this region
world in specialised rearing. and sector. This will also prevent the towns of
Leh and Kargil from being over populous.
§ Skill development of youth: Some large
private sector players in the Pashmina
market may also collaborate with the UT
administration and design a training
program dedicated to youth trying to make
a career in the Pashmina industry.
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Disclaimer
The report is prepared using information of a general nature and is not intended to address the
circumstances of any particular individual or entity. The report has been prepared from various public
sources and the information received from these sources is believed to be reliable. The information
available in the report is selective and subject to updation, revision and amendment. While the
information provided herein is believed to be accurate and reliable, ASSOCHAM and Primus Partners
Pvt. Ltd. do not make any representations or warranties, expressed or implied, as to the accuracy or
completeness of such information and data available in the public domain.
While due care has been taken while preparing the report, ASSOCHAM and Primus Partners Pvt.
Ltd. do not accept any liability whatsoever, for any direct of consequential loss arising from this
document or its contents.
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