Economic Growth and Sectoral Contributions
Jammu & Kashmir’s Economy is projected to grow at a rate of 7.06% in real terms during the financial year 2024-25, while the nominal Gross State Domestic Product (GSDP) is expected to increase by 11.19%, according to the Economic Survey Report for 2024-25. The report was presented in the legislative assembly on Thursday by the Chief Minister, ahead of the budget announcement scheduled for Friday.
As per the survey, the nominal GSDP is anticipated to reach ₹2.65 lakh crore, whereas the real GSDP is projected at ₹1.45 lakh crore. The region has maintained a compound annual growth rate of 4.89% in real GSDP from 2019-20 to 2024-25, surpassing the previous period’s growth rate of 4.81% recorded between 2011-12 and 2019-20. Additionally, Jammu & Kashmir’s Economy per capita income is expected to reach ₹1,54,703, marking a 10.6% increase and indicating a rise in economic prosperity for residents.
The contributions of various sectors to the Gross State Value have been significant, with the primary sector accounting for 20%, the secondary sector contributing 18.3%, and the tertiary sector leading at 61.7%. Inflation in the region has marginally increased by 0.2 percentage points, reaching 4.5% in 2024 from 4.3% in 2023.
Employment and Financial Developments
The Jammu & Kashmir’s Economy Survey highlights a reduction in the unemployment rate by 0.6% since 2019-20, reflecting improved employment opportunities. The report credits the growth to enhanced financial inclusion and industrial expansion. The expansion of banks and financial institutions has significantly increased access to banking services across the Union Territory. The deposit ratio stands at 62.01%, with a considerable rise in credit availability to Micro, Small, and Medium Enterprises (MSMEs) and the agricultural sector.
A total of 1,984 industrial units, with investments amounting to ₹9,606 crore, have been operationalized, generating employment for approximately 6,37,10 individuals. The report further indicates substantial progress in the handicraft sector, with notable growth in exports. Additionally, self-help groups have gained financial inclusion support, reinforcing the government’s commitment to economic development and empowerment.
Agricultural and Horticultural Advancements
Within Jammu & Kashmir’s Economy the agricultural sector is experiencing a transformation, shifting toward high-value crops and organic farming. Under the Holistic Agriculture Development Plan, an investment of ₹5,013 crore has been earmarked for 29 projects over the next five years. This initiative aims to boost GSDP and create significant employment opportunities in the sector.
The horticulture industry has also seen remarkable growth, particularly in fresh fruit production. Improved farming techniques, enhanced irrigation facilities, and the introduction of high-quality fruit varieties have contributed to this progress. The sector now plays a crucial role in the state’s economy, providing employment to a large segment of the population and benefiting from strategic investments and policy interventions.
