J-K's per capita income growth at 8.8 per cent outpaces Punjab, Delhi, HP: Economic Survey

Srinagar, Feb 5: Jammu & Kashmir has registered a per capita income growth rate of 8.81 per cent between 2019-20 and 2024-25, outperforming several major northern states and Union Territories including Punjab, Delhi, Himachal Pradesh, Chandigarh, and Haryana, official data reveals.

The Union Territory's compound annual growth rate (CAGR) of 8.81 per cent in per capita income during this five-year period is significantly higher than Himachal Pradesh's 6.54 per cent, Delhi's 6.74 per cent, Punjab's 7.46 per cent, Chandigarh's 8.21 per cent, and marginally ahead of Haryana's 8.72 per cent.

The per capita income in J&K stands at Rs 1,68,243 in nominal terms for 2025-26 (Advance Estimates), according to government data. While this remains below the national per capita income of Rs 2,19,575, the robust growth trajectory indicates accelerating economic momentum in the region.

The strong per capita income growth comes alongside steady expansion of J&K's overall economy. The Real Gross State Domestic Product (GSDP) is estimated to grow by 5.82 per cent in 2025-26, while Nominal GSDP is projected to grow by 8.89 per cent.

The size of J&K's economy is estimated at approximately Rs 2.86 lakh crore in nominal terms and Rs 1.50 lakh crore in real terms for the current fiscal year. During 2019-20 to 2024-25, the Union Territory achieved a CAGR of 4.47 per cent in real GSDP.

J&K contributes about 0.8 per cent to the national GDP, broadly reflecting its population share.
The revenue picture also reflects positive trends. Total revenue of Rs 13,521 crore has been realized during the current financial year 2025-26 till November, which is 64 per cent of the Rs 21,121 crore realized in FY 2024-25, indicating the Union Territory is on track to meet or exceed last year's collection.

Tax revenue collections have been particularly robust. In the first eight months of FY26, tax revenue of Rs 9,136 crore was realized – 64.12 per cent of the Rs 14,249 crore collected in the entire FY25. Non-tax revenue stood at Rs 4,386 crore, representing 63.82 per cent of last year's Rs 6,872 crore.

Among major revenue streams, taxes on power witnessed the highest growth, surging from Rs 2,716 crore in FY 2021-22 to Rs 4,908 crore in 2024-25 – a remarkable 80.71 per cent increase. GST collection grew by 34.28 per cent, while excise collection increased by 27.42 per cent during this period.

The contribution of non-tax revenue to total revenue from own resources has increased from 29 per cent in FY 2021-22 to 33 per cent in FY 2024-25. Power tariff's share in non-tax revenue grew substantially from 56 per cent to 71 per cent since FY 2021-22.

The tertiary sector dominates the economy, contributing 61.02 per cent to Gross State Value Added (GSVA) in 2025-26. The primary and secondary sectors are estimated to contribute 20.45 per cent and 18.52 per cent respectively.

Inflation in J&K has moderated from 4.5 per cent in 2024 to 3.8 per cent in 2025, showing a decrease of 0.7 percentage points, which supports purchasing power growth.

The unemployment rate on usual status has declined from 6.7 per cent in 2019-20 to 6.1 per cent in 2023-24. The Labour Force Participation Rate (LFPR) and Worker Population Ratio (WPR) have risen to 64.3 per cent and 60.4 per cent respectively in 2023-24, showcasing enhanced employment opportunities and economic activities.

During 2024-25, 10,814 units were established under PMEGP/JKREGP, providing self-employment to approximately 85,000 young people. As of November 2025, 36.08 lakh unorganized workers have been registered on the e-SHRAM portal.

In the current financial year (up to September 2025), 12,977 cases have been sanctioned under major employment generation schemes including PMEGP, NRLM, JKREGP, and PMWMY. Credit of Rs 389.56 crore has been disbursed to 10,139 beneficiaries till September 2025.

The banking infrastructure has expanded significantly, with the number of banking points (Branches/BCS/ATMs/IPPB) increasing from 13,723 in March 2025 to 14,007 in September 2025. On average, one bank branch is now available per 5,535 people, with area coverage of about 19.06 square kilometers per branch.

The Credit-Deposit Ratio stands at 62.93 per cent as of September 2025. Credit flow in the priority sector is highest in agriculture at 48 per cent, followed by MSMEs at 23 per cent, highlighting the government's focus on industrial development.

Financial health indicators have also improved, with Gross Non-Performing Assets reducing from 3.9 per cent in March 2025 to 3.26 per cent as of September 2025.

J&K has 23.10 lakh bank accounts under Pradhan Mantri Jan Dhan Yojana as of November 24, 2025, with RuPay Debit Cards issued to 65 per cent of account holders. Additionally, 11.40 lakh Kissan Credit Cards are active, with KCC loans amounting to Rs 10,421.45 crore extended up to September 2025.

Economists attribute J&K's strong per capita income growth to improved governance, enhanced revenue mobilization, focus on employment generation, and expansion of banking and financial services across the Union Territory.