Jammu and Kashmir Receives First Budget in Six Years: A Milestone in Economic Recovery

In a significant development, Jammu and Kashmir has received its first budget in six years, marking a crucial step toward normalcy since the revocation of its special status in 2019. While global media often focuses on security concerns in the region, the latest economic survey and budget announcements highlight substantial progress in economic growth, employment, and infrastructure development.

According to the latest Economic Survey, Jammu and Kashmir’s economy has grown at a compound annual growth rate (CAGR) of 4.89% from 2019 to 2025, slightly higher than the 4.81% CAGR recorded between 2011 and 2019. The per capita income has also risen by 14.8% over the past decade, currently standing at ₹154,000. While this figure remains below the national average, the gap is gradually shrinking. In terms of employment, the unemployment rate has decreased from 6.7% in 2019 to 6.1%, signaling an improvement in job opportunities and economic stability.

The economic structure of Jammu and Kashmir is distributed across three primary sectors. Agriculture and forestry contribute 20% to the economy but employ 43% of the workforce, highlighting a labor distribution challenge common across India. The manufacturing sector accounts for 18% of economic output, while the services sector remains the largest contributor, making up nearly 62% of the region’s economy. For the ongoing financial year, Jammu and Kashmir is projected to record a 7.06% growth rate, surpassing India’s national projection of 6.4%.

The newly announced budget includes several welfare and development initiatives, with a strong focus on women’s empowerment, infrastructure, and tourism. To enhance female mobility and economic participation, the government has introduced free bus rides for women and financial support for 40,000 female entrepreneurs. Additionally, the government is offering free electricity of up to 200 units per month for economically weaker sections and providing free rations of 10 kg per person starting from April 1st for underprivileged families.

Agriculture and tourism, two of Jammu and Kashmir’s most vital sectors, have received substantial allocations. The government has earmarked ₹8,115 crore for agriculture to enhance productivity and farmer support, while ₹390 crore has been set aside for tourism development, recognizing its potential to drive economic growth. Tourism in Jammu and Kashmir has witnessed significant growth, with a 300% increase in foreign tourist arrivals over the past four years. However, while Jammu has seen a higher influx of tourists, Kashmir’s footfall remains lower, emphasizing the need for targeted initiatives to boost tourism in the valley.

The budget and economic survey underscore Jammu and Kashmir’s steady recovery since 2019. Increased economic activity, employment growth, and rising investments indicate a positive trajectory. While challenges remain, particularly in infrastructure and social development, the region is making progress toward self-sufficiency and stability. With the central government’s promise to restore statehood, the next phase in Jammu and Kashmir’s transformation will depend on sustained policy measures and strategic investments to ensure long-term prosperity.