Real GSDP grows 5.82%, economy nears Rs 2.86 lakh cr
*Revenue up, digital finance reforms deepen
Mohinder Verma
JAMMU, Feb 5: Jammu & Kashmir’s economy is steadily gaining momentum with rising income levels, expanding services sector dominance, improved fiscal discipline and a booming tourism industry, as the Economic Survey 2025-26 paints a picture of gradual yet consistent transformation driven by reforms, infrastructure push and digital governance.
The Survey, which was tabled in the Legislative Assembly today by the Chief Minister Omar Abdullah, estimates real Gross State Domestic Product (GSDP) growth at 5.82 per cent and nominal growth at 8.89 per cent in 2025-26, taking the size of the economy to nearly Rs 2.86 lakh crore, with real GSDP around Rs 1.50 lakh crore. Over the period 2019-20 to 2024-25, the UT recorded a 4.47 per cent compound annual growth rate (CAGR), reflecting resilience and post-pandemic recovery.
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A comparison of the real growth performance of Jammu & Kashmir vis-à-vis northern States/UTs during 2019-20 to 2024-25 indicates a positive growth trend. During this period, Jammu & Kashmir is estimated to record a CAGR of 4.47 per cent, which is higher than Delhi (3.95 per cent), Himachal Pradesh (3.68 per cent) and marginally higher than Haryana (4.43 per cent).
The Per Capita Income (PCI) of Jammu & Kashmir has shown a steady increase over the period 2014-15 to 2025-26, rising by approximately 170 per cent, with PCI estimated at Rs 1,68,243 in 2025-26 in nominal terms.
The ratio of J&K’s PCI to India’s PCI has increased from 71.9 per cent in 2014-15 to about 76.5 per cent in 2025-26, indicating gradual convergence towards the national average. This improvement suggests rising income levels, improved living standards and enhanced economic opportunities for the residents of Jammu & Kashmir.
A comparative analysis of growth performance of Per Capita Income in nominal terms during 2019-20 to 2024-25 indicates that PCI of Jammu & Kashmir recorded a CAGR of about 8.81 per cent, which is higher than that observed in 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) during the same period.
The Economic Survey notes that the tertiary sector accounts for 61.02 per cent of Gross State Value Added, while the primary sector contributes 20.45 per cent and the secondary sector 18.52 per cent. Agriculture and allied sectors continue to play a critical role in employment and livelihood security, even as industry and services drive structural transformation. Further, inflation in J&K has decreased from 4.5 per cent in 2024 to 3.8 per cent in 2025, showing an overall decline of 0.7 percentage points.
Mentioning that fiscal performance has improved through enhanced revenue mobilisation and prudent expenditure, the Economic Survey reveals that revenue receipts reached Rs 13,521 crore up to November 2025, which is 64 per cent of the revenue of Rs 21,121 crore realised in FY 2024-25, supported by growth in GST, excise and power revenues. Capital expenditure has been prioritised for infrastructure creation and asset development, while digital platforms such as BEAMS and GeM have strengthened financial transparency and accountability.
“The Government of Jammu & Kashmir has implemented a range of IT-based financial reforms to enhance transparency, efficiency and accountability in public finance management. Platforms such as BEAMS enable work-wise fund allocation and real-time monitoring, while e-Stamping and e-Abgari systems have streamlined the collection of stamp and excise duties”, the Economic Survey said.
As per the Survey, public transparency has been strengthened through the EMPOWERMENT/ JANBHAGIDARI Portal and the PROOF platform, which allow citizens to track development works supported by physical verification and geo-tagged evidence. Procurement has been standardised through the Government e-Marketplace (GeM), with procurement volumes rising significantly and providing substantial opportunities for local businesses, which received about 65 per cent of orders.
Further, financial discipline and rigorous monitoring have resulted in a tremendous increase in project execution and completion undertaken during the last four years, rising from 50,418 in 2021-22 to 69,285 in 2024-25. Moreover, 11,821 works have been completed till November 2025 in the current FY26.
“Tourism remains a major engine of economic activity, with over 1.78 crore tourist arrivals in 2025. Improved connectivity, policy initiatives and aggressive promotion have helped revive the sector, generating employment and boosting allied industries including hospitality, handicrafts and transport”, the Economic Survey said, adding that Jammu & Kashmir has become a popular destination for high-end and destination weddings with scenic venues and has also attracted over 72 film and OTT projects in the past year, showcasing its cinematic appeal and cultural richness.
Industrial growth has been supported by policy reforms, new investment proposals and operationalisation of industrial units. Due to this, Jammu & Kashmir has achieved “Top Achiever” status in Ease of Doing Business rankings, reflecting administrative reforms and a more investment-friendly environment.
Stating that major investments in roads, power, connectivity and urban infrastructure have enhanced economic integration and improved access to markets, healthcare and education, the Economic Survey said infrastructure development has emerged as a central pillar of the UT’s growth strategy.
“Expansion of online services, adoption of digital governance tools and improved monitoring mechanisms have enhanced administrative efficiency and transparency. Moreover, technology-driven financial management and digital platforms have strengthened service delivery and public accountability”, the Survey further said, adding that health and education indicators have improved through targeted investments, while welfare schemes and skill development programmes have enhanced employment opportunities and social protection.
The Economic Survey projects sustained economic expansion supported by infrastructure investment, services growth, private sector participation and continued governance reforms.
“Jammu & Kashmir has closely aligned its development planning with the national Sustainable Development Goals framework by adopting a localised UT Indicator Framework and improved its composite score in the SDG India Index from 66 in 2020-21 to 74 in 2023-24, ranking second among Union Territories, attaining ‘Achiever’ status in SDG 7 and emerging as a ‘Frontrunner’ in nine SDGs, with the fastest progress observed in SDG 8 and SDG 11,” the Economic Survey said.
The Survey projects sustained growth through continued reforms, private investment, infrastructure expansion, digital innovation and sectoral diversification aimed at long-term economic resilience.
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