Jammu & Kashmir
Jammu & Kashmir, known as “Paradise on Earth” and famous for its mountainous landscape, derives significant economic support from its thriving tourism sector. The economy of J&K has shown steady growth in recent years, with real GSDP expected to grow by about 5.82 per cent in 2025–26 (AE at constant prices) and the size of the economy estimated at around
₹2.86 lakh crore (at current prices). The economy is largely service-driven, with the tertiary sector contributing 61 per cent to GVA, followed by the primary sector at 20.45 per cent and the secondary sector at around 18.52 per cent. The per capita income has increased significantly to approximately
₹1,68,243 in 2025–26, reflecting improved economic conditions. The Union Territory has been growing at a compound annual growth rate (CAGR) of 4.47 per cent at constant prices over the period 2019-20 to 2024-25. The Industrial Policy 2021–30, along with the Start-up Policy 2024–27 and the single-window clearance mechanism, has played a crucial role in promoting industrial development and investment in the Union Territory. These initiatives have led to the establishment of several new industrial units, boosting employment and economic activity. Jammu & Kashmir is witnessing rapid infrastructure development, with numerous road, rail, and airport projects underway to improve connectivity. A number of major infrastructure projects and several highway development initiatives are being executed to strengthen the transport network. Improved connectivity through expressways, tunnels, and rail links is expected to further enhance trade and tourism in the region. The government is also promoting tourism infrastructure including ropeways and destination development projects. The region also continues to focus on hydropower development, supported by substantial natural potential. The installed power capacity of J&K has increased to around 3,600 MW, while the Union Territory has an estimated hydropower potential of about 18,000 MW and significant solar energy potential. With diverse agro-climatic conditions, the region offers vast opportunities in horticulture and food production, with strong growth in fruit production and related exports. This has created significant investment potential in food processing and allied sectors. The scenic beauty, favorable climate, and improved infrastructure make J&K an attractive destination for tourism, while sectors such as hydropower and renewable energy offer promising opportunities for future growth.
Jammu & Kashmir, known as “Paradise on Earth” and famous for its mountainous landscape, derives significant economic support from its thriving tourism sector. The economy of J&K has shown steady growth in recent years, with real GSDP expected to grow by about 5.82 per cent in 2025–26 (AE at constant prices) and the size of the economy estimated at around
₹2.86 lakh crore (at current prices). The economy is largely service-driven, with the tertiary sector contributing 61 per cent to GVA, followed by the primary sector at 20.45 per cent and the secondary sector at around 18.52 per cent. The per ...