SOCIO – ECONOMIC DEVELOPMENT IN JAMMU AND KASHMIR

The Union Territory of Jammu and Kashmir is witnessing a transformative phase of socio-economic development, aimed at fostering inclusive growth and enhancing the standard of living for its residents. According to the Economic Survey Report 2025, the region’s economy is expected to grow at a promising rate of 7.06% during the fiscal year 2024-25, reflecting a steady upward trajectory. The real Gross State Domestic Product of Jammu and Kashmir is projected to be around ₹1.45 lakh crore, while the nominal Gross State Domestic Product is estimated to reach ₹2.65 lakh crore in the same period. Furthermore, the per capita Net State Domestic Product at current prices is expected to increase to ₹1,54,703, marking a 10.6% growth over the previous year.
Several key sectors are driving this economic momentum. The agriculture sector, a traditional backbone of the region’s economy has received a substantial allocation of ₹815 crore. This funding is being directed towards enhancing irrigation systems, encouraging crop diversification and improving farmer incomes. Tourism, another vital sector for the Union Territory, is being revitalized with an allocation of ₹390 crore. The government is actively promoting Jammu and Kashmir’s scenic landscapes and cultural richness to attract domestic and international tourists which in turn is expected to boost employment and regional revenue.
Simultaneously, reforms in the power sector are being implemented to enhance efficiency and service delivery. These include improving metering, billing and collection systems, as well as addressing high-cost debts and optimizing financial liabilities. These efforts aim to stabilize the sector and provide reliable power supply to both households and industries, which is essential for overall development.
On the social welfare front, the government has introduced multiple initiatives to support vulnerable communities. One of the notable measures includes the provision of 200 units of free electricity to all Antyodaya Anna Yojana families, easing the financial burden on low-income households. Additionally, these families will also receive 10 kilograms of free ration starting April 1, 2025, ensuring food security and helping mitigate poverty. The Marriage Assistance Scheme has also seen enhancement, with financial assistance increased from ₹50,000 to ₹75,000 to support girls from economically disadvantaged backgrounds. Another important step is the establishment of 98 water testing laboratories across the Union Territory, which aims to ensure access to clean drinking water, thereby improving public health and reducing the incidence of water-borne illnesses.
Despite these encouraging developments, Jammu and Kashmir faces certain persistent challenges. One major issue is the high Aggregate Technical and Commercial losses in the power sector, which have led to significant outstanding liabilities for power procurement. Tackling this problem requires deep structural reforms and improved operational efficiency. Another area of concern is the heavy reliance on external funding, as internal tax and non-tax revenues currently cover only about 30% of total revenue receipts and 25% of overall budgetary requirements. To address this, the government needs to focus on strengthening local revenue generation and expanding the economic base.
Nevertheless, key statistics paint a hopeful picture. Tax revenue realized in the first nine months of the financial year 2024-25 amounted to ₹10,624.09 crore, indicating improved collection efforts. Additionally, the unemployment rate has dropped to 6.1% in 2023-24 from 6.7% in 2019-20, suggesting a gradual improvement in job creation and labor market conditions. These figures reflect a broader trend of recovery and growth.
Looking ahead, the government is laying strong emphasis on infrastructure development to boost connectivity and facilitate trade and commerce. Upgrades in roads, bridges and other critical infrastructure will be crucial in supporting economic activities and reducing regional disparities. Industrial development is another priority, with a focus on sectors such as textiles, food processing and information technology. These industries hold potential for significant employment generation and revenue inflow. Human resource development also remains a cornerstone of future plans, with targeted investments in education and healthcare to improve the overall quality of life and human capital.
By channeling resources and policy focus into these areas, Jammu and Kashmir can continue on its path toward sustainable and inclusive growth. The combination of economic expansion, social support schemes and strategic infrastructure investments is positioning the region to emerge as a dynamic and prosperous hub. With consistent governance and continued public engagement, Jammu and Kashmir is steadily transforming into a region of opportunity, resilience and hope for its people.