J&K economy likely to grow at 5.82% in 2025-26: Economic Survey
Srinagar, Feb 5: The Union Territory of Jammu and Kashmir’s real Gross State Domestic Product (GSDP) is projected to grow at 5.82 per cent in 2025-26, according to the Economic Survey Report 2025-26.
The report notes that J&K recorded a compound annual growth rate (CAGR) of 4.47 per cent in real GSDP during the period 2019-20 to 2024-25, reflecting economic resilience and steady recovery after the pandemic.
The growth rate is higher than Delhi and Himachal Pradesh and marginally higher than Haryana during the same period, the survey said.
The Economic Survey was tabled in the J&K Legislative Assembly on Thursday by Chief Minister Omar Abdullah. It estimates the size of the J&K economy at around Rs 2.86 lakh crore in nominal terms and Rs 1.50 lakh crore in real terms.
Per capita income in the Union Territory is projected at Rs 1,68,243 in 2025-26, registering a higher growth rate than several northern states and UTs, including Himachal Pradesh, Delhi, Punjab, Chandigarh and Haryana, during 2019-20 to 2024-25.
Jammu and Kashmir contributes nearly 0.8 per cent to the national GDP, the report said.
Sector-wise, the primary sector is estimated to contribute 20.45 per cent to the Gross State Value Added (GSVA) in 2025-26 and continues to remain a major source of livelihood, employing about 42.99 per cent of the workforce.
The primary, secondary and tertiary sectors are estimated to contribute 20.45 per cent, 18.52 per cent and 61.02 per cent, respectively, to the GSVA in 2025-26, it added.
On inflation, the survey said it declined from 4.5 per cent in 2024 to 3.8 per cent in 2025, indicating improved price stability. Revenue receipts of Rs 13,521 crore were realised up to November 2025, accounting for 64 per cent of the total revenue collected in the previous financial year.
The unemployment rate in the UT declined from 6.7 per cent in 2019-20 to 6.1 per cent in 2023-24, while the labour force participation rate and worker population ratio improved to 64.3 per cent and 60.4 per cent, respectively.
Under employment generation schemes such as PMEGP and JKREGP, over 10,800 units were established in 2024-25, creating self-employment opportunities for around 85,000 youth. More than 36 lakh unorganised workers have been registered on the e-SHRAM portal till November 2025.
The report said the agriculture sector is transitioning towards high-value crops, organic farming and exotic varieties under initiatives such as the Holistic Agriculture Development Programme (HADP) and the Jammu and Kashmir Competitiveness Improvement Project (JKCIP).
Horticulture also recorded expansion, with the area under major crops increasing to 3.47 lakh hectares, while overall production registered a 12.5 per cent growth. Exports of almonds and walnuts stood at Rs 602.53 crore in 2024-25, it said.
Tourism continued to be a major growth driver, with 1.78 crore tourists visiting Jammu and Kashmir in 2025, including 36,000 foreign tourists.
Industrial growth remained robust, with 2,227 units becoming operational over the last seven years, attracting investments worth Rs 15,940 crore, the survey said.
On social indicators, the report said the neonatal mortality rate declined to 9.8 and the infant mortality rate to 14, while life expectancy increased to 74.3 years. Institutional deliveries reached 99.7 per cent, and full immunisation coverage touched 100 per cent.
More than 87.64 lakh Ayushman Bharat Golden Cards have been issued, and around 19 lakh treatments were provided under the AB-PMJAY-SEHAT scheme, resulting in savings of approximately Rs 3,435 crore.
In education, total enrolment crossed 26.17 lakh students in 2024-25, with a sharp decline in dropout rates and improved transition rates across schooling levels.
The survey also highlighted that hydropower generation capacity is set to double to 3,014 MW by 2028, while transmission and distribution capacity has increased by 44 per cent over the last six years.
