Jammu and Kashmir’s Economic Survey tabled in the Assembly on Thursday by Chief Minister Omar Abdullah presents a picture of measured but steady economic consolidation, signalling that the Union Territory is moving from post-pandemic recovery to a phase of structural stabilisation and expansion.
With real GSDP projected to grow by 5.82 per cent in 2025-26 and the economy’s nominal size touching Rs 2.86 lakh crore, the data suggests that growth is no longer episodic but increasingly broad-based and sustained.
The Survey’s longer trend — a 4.47 per cent CAGR in real GSDP between 2019-20 and 2024-25— is particularly significant as it captures a period marked by administrative transition, pandemic disruption, and gradual reopening of economic activity.
The figures indicate that J&K’s economy has not only regained lost ground but is now expanding on a firmer footing, reflecting improving governance capacity, revival of key sectors, and rising economic confidence across the region.
Jammu and Kashmir’s economy is projected to grow at a steady pace of 5.82 per cent in real terms during 2025-26, with the nominal Gross State Domestic Product (GSDP) estimated to rise by 8.89 per cent, taking the overall size of the Union Territory’s economy to Rs 2.86 lakh crore, according to the latest Economic Survey.
The Economic Survey points out that J&K’s growth trajectory is being supported by fiscal discipline, sectoral diversification, tourism revival, industrial reforms, and rapid infrastructure development.
It indicates that the per capita income in J&K has risen faster than in many northern States.
Per Capita Income in J&K is estimated at Rs 1,68,243 for 2025-26. The Survey notes that from 2019-20 to 2024-25, J&K’s per capita income grew at a CAGR of 8.81 per cent, higher than Himachal Pradesh (6.54 per cent), Delhi (6.74 per cent), Punjab (7.46 per cent), Chandigarh (8.21 per cent) and Haryana (8.72 per cent).
Sectoral analysis shows that the tertiary (services) sector contributes 61.02 per cent to Gross State Value Added (GSVA), followed by the primary sector at 20.45 per cent and the secondary sector at 18.52 per cent.
While services and industry are driving structural transformation, agriculture and allied sectors continue to play a crucial role in employment, supported by increased food grain and fruit production, expansion of high-density plantations, formation of Farmer Producer Organisations (FPOs), and integration with e-NAM markets.
The survey points out that inflation in J&K has declined from 4.5 per cent in 2024 to 3.8 per cent in 2025, and fiscal indicators show improved revenue performance. Rs 13,521 crore revenue has been realised till November 2025 (64 per cent of FY25 total). Power tariffs now account for 71 per cent of non-tax revenue, up from 56 per cent in FY22.
The Economic Survey says that major increases have been recorded in taxes on power: 80.71 per cent rise since FY22, GST collection: 34.28 per cent increase and Excise collection: 27.42 per cent increase.
The Survey also credits digital financial systems such as the Budget Estimation, Allocation & Monitoring System (BEAMS), GeM, and other e-governance platforms for improving transparency and efficiency.
It says that Jammu & Kashmir has attracted large-scale investment proposals, operationalised new industrial units, and achieved a ‘Top Achiever’ ranking nationally in Ease of Doing Business, reflecting policy reforms and administrative improvements.
Tourism continues to be a major economic driver, contributing nearly 7 per cent to J&K’s GDP and supporting the livelihoods of around 5 lakh people. It points out that 2.36 crore tourists visited J&K in 2024. As many as 1.78 crore visited in 2025 despite security and natural challenges.
The Survey points out a rise in destination weddings, adventure, border, rural and golf tourism and 72 film and OTT projects shot in J&K in the past year.
The Survey underscores progress in power, roads, water supply, digital services, and e-governance, with J&K emerging as a leading Union Territory in online public service delivery and digital inclusion.