JAMMU, Mar 06: Jammu and Kashmir’s economy is expected to grow by 7.06% in the year 2024-25, according to the Economic Survey Report (ESR). After a strong recovery in 2023, when the economy grew by 9.31%, the growth rate is expected to moderate slightly in 2025. The Nominal Gross State Domestic Product (GSDP) is predicted to increase by 11.19%, reaching Rs 2.65 lakh crore.
Even though the growth is slowing down a little, the overall outlook remains positive. Jammu and Kashmir continues to benefit from a combination of infrastructure development, investment promotion, and strategic policy reforms after the abrogation of Article 370. The real GSDP, adjusted for inflation, is expected to reach Rs 1.44 lakh crore in 2025, showing the region’s ongoing economic growth and transformation.
Chief Minister Omar Abdullah, who also serves as the finance minister, Thursday laid on the Table of the House a copy of the Economic Survey Report for the year 2024-25. It is the first economic survey tabled after a gap of seven years in the Assembly on Thursday.
The Jammu and Kashmir has made significant progress in employment, with the unemployment rate falling to 6.1% in 2023-24, down from 6.7% in 2019-20. The Labour Force Participation Rate (LFPR) has risen to 64.3%, and the Worker Population Ratio (WPR) stands at 60.4%. The government has set up 40,778 self-employment units under various schemes, providing employment to over 1.16 lakh youth. Additionally, J&K’s start-up ecosystem has grown impressively, with a 287% increase in DPIIT-registered start-ups since 2020, including 333 women-led ventures.
Jammu and Kashmir’s economy is projected to grow steadily, with the primary sector, including agriculture, horticulture, and handicrafts, remaining a vital contributor. The tertiary sector, driven by tourism, services, and infrastructure, is expected to account for 61.7% of the Gross State Value Added (GSVA) in 2024-25.
The Union Territory has made considerable strides in exports, with handicraft exports doubling in the past two years. Items like carpets, woollen shawls, and paper-mâché contributed to Rs 1,162 crore in exports during 2023-24, compared to Rs 563 crore in 2021-22. This increase also helped the region rise in the Export Production Index (EPI) from 35th place in 2020 to 17th in 2022.
Tourism continues to be a key growth sector, with a record 2.36 crore tourists visiting J&K in 2024, including 65,000 foreign tourists. The region also hosted 5.12 lakh Shri Amarnathji pilgrims and 94.56 lakh Shri Mata Vaishno Devi pilgrims. The tourism revival, boosted by the 3rd G20 Tourism Working Group meeting held in Srinagar in 2023, has significantly impacted the local economy. Infrastructure projects such as the Jammu Semi Ring Road (98% complete), Srinagar Semi Ring Road, and the Delhi-Amritsar-Katra expressway will further improve connectivity, benefiting both tourism and trade.
The per capita income of J&K is expected to rise by 10.6% to Rs 1,54,703 in 2024-25, indicating a better standard of living for its residents. Inflation, however, has seen a slight increase, reaching 4.5% in 2024 compared to 4.3% in 2023. At the same time, India’s inflation rate decreased from 5.7% in 2023 to 5% in 2024.
On the fiscal front, J&K’s financial position remains strong. In the first nine months of fiscal year 2024-25, the state achieved Rs 15,737 crore in revenue, which accounts for 77% of the total revenue for 2023-24. Non-tax revenue, especially from power tariffs, contributed significantly to the revenue growth. Tax revenue increased by 76% compared to the previous year, with notable jumps in vehicle taxes (96%) and power tariffs (67%).
The agriculture sector in J&K is evolving, with the region moving toward self-reliance in vegetable production and focusing on high-value crops and organic farming. Under the Holistic Agriculture Development Plan, the government will invest Rs 5,013 crore in 29 projects over the next five years, which is expected to add Rs 28,000 crore to the GSDP and generate 2.88 lakh sustainable jobs.
Hydropower is another promising sector, with an estimated potential of 18,000 MW. So far, about 23.81% of this potential has been harnessed, creating more opportunities for energy production and economic growth.
The Jammu and Kashmir’s forests, which cover 48% of J&K’s geographical area, are crucial to the local economy, supporting tourism, agriculture, and energy production. J&K has designated 4861.28 sq km as a Protected Area Network, including four national parks, 14 wildlife sanctuaries, and 30 conservation reserves, in line with its commitment to sustainable development.
Chief Minister Omar Abdullah highlighted the importance of inclusive policies for sustained growth. He said, “The focus on sustainable development, infrastructure, and innovation has propelled Jammu and Kashmir toward a prosperous future. Our commitment to building a stable, inclusive, and forward-looking economy remains unwavering.”
The Economic Survey for 2025 lays out a clear path for J&K’s continued growth, positioning it as an important contributor to India’s economic future.
Key highlights ESR
• Unemployment drops to 6.1%
• Per capita income set to increase by 10.6% to Rs 1.54 lakh in 2024-25
• J&K’s inflation rises to 4.5% in 2024, slightly outpacing national average
• J&K’s start-up ecosystem booms, witnessing 287% growth in DPIIT-registered start-ups since 2020
• Tourist arrivals to J&K reach record 2.36 cr in 2024
• Key infrastructure projects to boost connectivity, including Jammu & Srinagar Ring Roads and Delhi-Katra Expressway
• Agriculture sector transforms with focus on high-value crops, organic farming
• J&K’s hydropower potential at 18,000 MW, opening new opportunities for energy growth
