C Rangarajan, Chairman of the Economic Advisory Council to the Prime Minster, said here on Thursday that though the Kashmir issue has its political and social aspects, economic intervention has to take a lead for the imbroglio to be solved. He said the biggest challenge was to transform a strife ravaged economy in a manner that paves way for sustainable peace in the state.

“It involves manifold political and social aspects, but economic intervention will have to take a lead,” Rangarajan said in his inaugural address at the 90th Annual Conference of the Indian Economic Association (IEA) held at Kashmir University. “We have to work out a development policy that ensures peace, prosperity and economic returns.”

Rangarajan, who was Chairman of the working group for economic development of Jammu and Kashmir, said there were six guiding objectives and goals to meet the developmental challenges of J-K: reconstruction and maintenance of existing physical assets, investment in physical and social infrastructure, conducive environment for private investment, balanced regional development and comprehensive fiscal adjustment.