Ladakh - Economy

Economy

The economy of Ladakh rests on three pillars: the Indian Army, tourism, and civilian government in the form of jobs and extensive subsidies. Agriculture, the mainstay only one generation ago, is no longer a major portion of the economy, although most families still own and work their land.

For centuries, Ladakh enjoyed a stable and self-reliant agricultural economy based on growing barley, wheat and peas and keeping livestock, especially yaks, cows, dzos (a yak-cow cross breed), sheep and goats. At altitudes of 3,000 to 4,300 m (10,000 to 14,000 ft), the growing season is only a few months long every year, similar to the northern countries of the world. Animals are scarce and water is in short supply. The Ladakhis developed a small-scale farming system adapted to this unique environment. The land is irrigated by a system of channels which funnel water from the ice and snow of the mountains. The principal crops are barley and wheat. Rice was previously a luxury in the Ladakhi diet, but, subsidised by the government, has now become a cheap staple.

At lower elevations fruit is grown, while the high altitude Rupshu region is the preserve of nomadic herders. In the past, surplus produce was traded for tea, sugar, salt and other items. Two items grown for export are apricots and pashmina. Currently, the largest commercially sold agricultural product is vegetables, sold in large amounts to the Indian army as well as on the local market. Production remains mainly in the hands of small-landowners who work their own land, often with the help of migrant labourers from Nepal. Naked barley (Ladakhi: nas, Urdu: grim) was traditionally a staple crop all over Ladakh. Growing times vary considerably with altitude. The extreme limit of cultivation is at Korzok, on the Tso-moriri lake, at 4,600 m (15,100 ft), which has what are widely considered to be the highest fields in the world.

In the past Ladakh's geographical position at the crossroads of some of the most important trade routes in Asia was exploited to the full. Ladakhis collected tax on goods that crossed their kingdom from Turkestan, Tibet, Punjab, Kashmir and Baltistan. A minority of Ladakhi people were also employed as merchants and caravan traders, facilitating trade in textiles, carpets, dyestuffs and narcotics between Punjab and Xinjiang. However, since the Chinese Government closed the borders with Tibet and Central Asia, this international trade has completely dried up.

Since 1974, the Indian Government has encouraged a shift in trekking and other tourist activities from the troubled Kashmir region to the relatively unaffected areas of Ladakh. Although tourism employs only 4% of Ladakh's working population, it now accounts for 50% of the region's GNP.

Adventure tourism in Ladakh started in the 19th century. By the turn of the 20th century, it was not uncommon for British officials to undertake the 14-day trek from Srinagar to Leh as part of their annual leave. Agencies were set up in Srinagar and Shimla specialising in sports-related activities — hunting, fishing and trekking. This era is recorded in Arthur Neves The Tourist's Guide to Kashmir, Ladakh and Skardo, first published in 1911. Today, about 100,000 tourists visit Ladakh every year. Among the popular places of tourist interest include Leh, Drass valley, Suru valley, Kargil, Zangskar, Zangla, Rangdum, Padum, Phugthal, Sani, Stongdey, Shyok Valley, Sankoo, Salt Valley and several popular trek routes like Lamayuru - Padum - Darcha, the Nubra valley and the Indus valley.

Extensive government employment and large-scale infrastructure projects — including, crucially, road links — have helped consolidate the new economy and create an urban alternative to farming. Subsidised food, government jobs, the tourism industry and new infrastructure have accelerated a mass migration from the farms into Leh town. The Indian army is a major part of the economy by employing tens of thousands of Ladakhis as soldiers as well as purchasing goods and services locally.