Jammu and Kashmir’s real Gross State Domestic Product (GSDP) is estimated to grow by 5.82 per cent in 2025-26, reflecting steady economic recovery and resilience, according to the Economic Survey Report 2025-26 tabled in the Legislative Assembly on Thursday.
Chief Minister Omar Abdullah presented the report in the House, which estimates the size of the Union Territory’s economy at about Rs 2.86 lakh crore in nominal terms and Rs 1.50 lakh crore in real terms.
The survey noted that J&K recorded a compound annual growth rate (CAGR) of 4.47 per cent in real GSDP between 2019-20 and 2024-25, describing it as a sign of post-pandemic recovery. It added that the growth rate during this period was higher than Delhi and Himachal Pradesh and marginally above Haryana.
Per capita income in the Union Territory is projected at Rs 1,68,243 in 2025-26, with a growth rate surpassing several northern states and Union Territories, including Himachal Pradesh, Delhi, Punjab, Chandigarh and Haryana over the last five years. J&K currently contributes around 0.8 per cent to the national GDP.
Sector-wise, the primary sector is expected to contribute 20.45 per cent to Gross State Value Added (GSVA) in 2025-26 and continues to support livelihoods for about 42.99 per cent of the workforce. The secondary and tertiary sectors are projected to contribute 18.52 per cent and 61.02 per cent, respectively.
On price trends, the report said inflation in the Union Territory declined from 4.5 per cent in 2024 to 3.8 per cent in 2025, indicating improved price stability. Revenue receipts up to November 2025 stood at Rs 13,521 crore, accounting for 64 per cent of the total revenue realised in the previous financial year.
Employment indicators also showed improvement, with the unemployment rate falling from 6.7 per cent in 2019-20 to 6.1 per cent in 2023-24. The labour force participation rate and worker population ratio rose to 64.3 per cent and 60.4 per cent, respectively.
Under employment schemes such as PMEGP and JKREGP, more than 10,800 units were set up in 2024-25, generating self-employment for around 85,000 youth. Over 36 lakh unorganised workers were registered on the e-SHRAM portal till November 2025.
The survey highlighted a shift in agriculture towards high-value crops, organic farming and exotic varieties under programmes such as the Holistic Agriculture Development Programme (HADP) and J&K Competitiveness Improvement Project (JKCIP). Horticulture area expanded to 3.47 lakh hectares, with production rising by 12.5 per cent. Almond and walnut exports reached Rs 602.53 crore in 2024-25.
Tourism remained a major growth driver, with 1.78 crore visitors, including about 36,000 foreign tourists, visiting Jammu and Kashmir in 2025, the report said.
Industrial growth was described as robust, with 2,227 units becoming operational over the past seven years and attracting investments worth Rs 15,940 crore.
In the social sector, the neonatal mortality rate declined to 9.8 and infant mortality rate to 14, while life expectancy increased to 74.3 years. Institutional births reached 99.7 per cent and full immunisation coverage touched 100 per cent.
The report said more than 87.64 lakh Ayushman Bharat Golden Cards have been issued, and about 19 lakh treatments delivered under the AB-PMJAY-SEHAT scheme, resulting in estimated savings of Rs 3,435 crore for beneficiaries.
In education, total enrolment crossed 26.17 lakh students in 2024-25, alongside falling dropout rates and improved transition levels. The survey added that hydropower capacity is being doubled to 3,014 MW by 2028, while power transmission and distribution capacity has risen by 44 per cent over the past six years.
