J&K economy grows at 7.06% in FY 2024-25, tourism hits record high: Economic Survey

Srinagar, March 6: Jammu and Kashmir has registered impressive economic growth with its real Gross State Domestic Product (GSDP) expanding at 7.06 percent in the fiscal year 2024-25, according to the latest Economic Survey.

The nominal GSDP is projected to reach Rs. 2.65 lakh crores, reflecting an 11.19 percent increase.
The per capita income in the Union Territory has shown a robust growth of 10.6 percent, reaching Rs. 1,54,703 in 2024-25, indicating improved economic well-being for residents.

The service sector continues to dominate the economy, contributing 61.7 percent to the Gross State Value, followed by the primary sector at 20 percent and the secondary sector at 18.3 percent.
In a positive development for job seekers, the unemployment rate has decreased to 6.1 percent in 2023-24 from 6.7 percent in 2019-20, suggesting enhanced employment opportunities across the region.

Industrial Growth and Financial Inclusion

J&K has made significant strides in industrial development with 1,984 units becoming operational, representing an investment of Rs. 9,606 crores and creating 63,710 jobs. The Credit-Deposit Ratio stands at 62.01 percent, with increased credit flow to MSMEs and agriculture.

The region has also achieved notable growth in handicraft exports and expanded financial inclusion for self-help groups.

Tourism Boom

Tourism has emerged as a major success story with a record 2.36 crore tourist visits in 2024, including 65,000 foreign tourists. Religious tourism continued to thrive with 5.12 lakh Amarnath yatris and 94.56 lakh Vaishno Devi yatris.

The hosting of the G20 Tourism Working Group meeting in Srinagar in May 2023 is credited with sparking the revival of Kashmir's tourism sector.

Infrastructure Development

Infrastructure continues to develop at a rapid pace with the extension of railway connectivity to Kashmir. The Udhampur-Ramban and Chenani-Sudhmahadev-Goha roads are scheduled for completion by 2025 and 2026 respectively.

The Delhi-Amritsar-Katra expressway, covering 135 km in J&K, is under construction and is expected to reduce travel time from Delhi to Katra to just 6 hours upon completion.
Agriculture and Horticulture Transformation

The agricultural sector is undergoing a transformation with a shift toward high-value crops and organic farming. The Holistic Agriculture Development Plan aims to invest Rs. 5,013 crore in 29 projects over the next five years.

The horticulture sector has shown significant growth in fresh fruit production, contributing substantially to the GSDP and supporting a large workforce.

The Economic Survey highlights J&K's continued progress across multiple sectors, suggesting a positive trajectory for the Union Territory's development in the coming years.