JAMMU: Jammu and Kashmir’s economy is expected to grow at a robust pace in 2024-25, with the Real Gross State Domestic Product (GSDP at constant prices) projected to expand by 7.06 per cent and the Nominal GSDP (at current prices) estimated to rise by 11.19 per cent, according to the Economic Survey 2025 tabled in the legislative assembly. The size of the economy in nominal terms is expected to reach approximately Rs 2,65,389 crore, while the real GSDP is estimated to be around Rs 1,44,614 crore.
From 2019-20 to 2024-25, Jammu and Kashmir is projected to achieve a compound annual growth rate (CAGR) of 4.89 per cent in its real GSDP, surpassing the 4.81 per cent growth recorded between 2011-12 and 2019-20. The report attributes this improved growth trajectory to enhanced economic activities, government-led infrastructure development, and business-friendly initiatives.
A comparison with other northern states between 2019-20 and 2023-24 shows that Jammu and Kashmir’s economy grew at a CAGR of 4.35 per cent, outpacing Delhi (3.48 per cent), Himachal Pradesh (4.18 per cent), and Haryana (3.85 per cent).
Per capita income (PCI) in Jammu and Kashmir has seen remarkable growth, rising by approximately 148 per cent from 2014-15 to 2024-25. The PCI for 2024-25 is estimated at Rs 1,54,703. Although Jammu and Kashmir’s per capita income remains below the national average, the gap has been narrowing, with the ratio of Jammu and Kashmir’s PCI to India’s PCI improving from 71.9 per cent in 2014-15 to 77.3 per cent in 2024-25. The per capita income is expected to grow at 10.6 per cent in 2024-25, surpassing the all-India growth rate of 8.7 per cent.
From 2019-20 to 2023-24, Jammu and Kashmir’s per capita income grew at a CAGR of 8.3 per cent, higher than Punjab (6.2 per cent), Delhi (6.7 per cent), Himachal Pradesh (6.0 per cent), and Chandigarh (6.5 per cent). This indicates a significant improvement in living standards and economic prosperity for the region’s residents.
The economic survey highlights the sectoral composition of Jammu and Kashmir’s economy. The primary sector, dominated by agriculture and allied activities, is projected to contribute 20 per cent to the Gross State Value Added (GSVA) in 2024-25. Agriculture remains crucial for employment, engaging 42.81 per cent of the labour force, and is seen as essential for poverty reduction and inclusive growth.
The secondary sector is expected to account for 18.30 per cent of GSVA, with the construction sub-sector making up 42.46 per cent of this share. Construction remains a significant employment provider, with a 14.94 per cent employment share in 2023-24, underlining the ongoing infrastructure and urbanisation efforts in the region.
The services sector continues to dominate the economy, with an estimated 61.70 per cent share in GSVA and an employment contribution of 31.31 per cent in 2023-24. Public administration is the largest sub-sector, indicating the central role of government employment and administration in the economy. The report underscores the growing potential of the tourism sector, which, with further development, could create numerous jobs and stimulate economic growth by leveraging Jammu and Kashmir’s natural beauty and cultural heritage.
