Jammu and Kashmir State of India has been hit the hardest by ongoing violent conflict with its devastating impact on human lives and development. Demobilization and reintegration into society of all people uprooted and affected by violent conflict—ex-combatants, youth, and women—is an important challenge for development policy planners and decision makers. Demobilization and reintegration are fundamentally about the need for new forms of livelihood for ex-combatants, youth, and female that ultimately requires the creation of new jobs and providing them sustainable employment opportunities on micro enterprises through micro-credit programs. The task is all the tougher because youth, women, and ex-combatants often have no job market skills. Successfully incorporating ex-combatants, youth, and women requires economic sustainability, which has a longer time-frame than the political dimension of demobilization and integration.