A customer buys dates at a market in Srinagar on March 1, 2025, ahead of Ramadan.
| Photo Credit: Imran Nissar

Jammu & Kashmir’s compound annual growth rate shows a fractional increase at 4.89% and unemployment rate declines marginally in the Financial Year 2024-25, according to the 2025 Economic Survey Report tabled in the Jammu & Kashmir Assembly on Thursday (March 6, 2025.)

The survey underlined that the Union Territory (UT) of J&K was “estimated to achieve a compound annual growth rate of 4.89% in its real Gross State Domestic Product (GSDP) from 2019-20 to 2024-25 in comparison to 4.81% growth rate recorded from 2011-12 to 2019-20”.

It predicted that the real GSDP of J&K is expected to grow at 7.06% and the nominal GSDP was expected to grow at 11.19% in 2024-25. “The size of the economy of J&K (Nominal Gross State Domestic Product) is estimated to be approximately ₹2.65 lakh crore and its real GSDP is estimated to be about ₹1.45 lakh crore during 2024-25,” it said.

The survey suggested that per capita income of J&K (Per Capita NSDP) at current prices is estimated to attain a level of ₹1,54,703 in 2024-25 (Advance Estimates) as compared to national level per capita income of ₹2,00,162 in 2024-25. “Per capita income of J&K at current prices is anticipated to grow at a rate of 10.6% in 2024-25,” it said.

The survey pointed out that the comparative analysis of J&K’s Per Capita Income with that of northern States from 2019-20 to 2023-24 indicates that J&K’s per capita income grew at a compound annual growth rate of 8.3% which is higher than Punjab (6.22%), Delhi (6.74%) and Himachal Pradesh (6%).

The survey also forecast that the primary, secondary and tertiary sector is expected to contribute 20%, 18.30%, and 61.70% respectively in the Gross State Value Added during 2024-25.

“Inflation in J&K has increased to 4.5% in 2024 from 4.3% in 2023 showing an overall increase of 0.2 percentage points whereas at All India level the inflation has decreased to 5% from 5.7% during the same period. Inflation in J&K hovered between 3.8% to 4.5% from 2019 to 2024 in comparison to national figures 3.7% to 5.0% during the same period,” it pointed out.

J&K, according to the survey, has shown significant progress, with the unemployment rate declining to 6.1% in 2023-24 from 6.7% in 2019-20. “This improvement is also reflected in the Labour Force Participation Rate (LFPR) and Worker Population Ratio (WPR), which have risen to 64.3% and 60.4% respectively in 2023-24, showcasing enhanced employment opportunities and economic activities in J&K,” it added.

About 1.16 lakh young boys and girls, the survey said, were employed in 40,778 units established under various Self-employment Schemes (SESs).

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“The Labour Force Participation Rate (LFPR) in J&K is 64.30% in 2023-24 as against 56.30% in 2019-20, while as Worker Population Ratio (WPR) has increased to 60.40% in 2023-24 as from 52.50% in 2019-20. Both parameters have shown significant progress over the year,” the survey said.

Against the investment proposals worth ₹1.63 lakh crore received up to December 2024, the survey suggested that only 1,984 units with investment of ₹9,606.46 crore and employment of 63,710 have come into production from 2019 till December 2024.

The agriculture sector in J&K, the survey suggested, was shifting towards high-value crops, organic vegetables, and exotic varieties. The government plans to invest ₹5,013 crore in 29 projects over five years, which shall result in addition of ₹28,000 crore to GSDP thereby creating 2.88 lakh jobs on a sustainable basis. “It will also benefit 13 lakh families and skill 2.5 lakh youth through 19,000 new enterprises,” it said.

According to the survey, the area under major horticulture crops increased by 2000 Ha (0.58%) from 3.42 lakh hectares in 2021-22 to 3.44 lakh hectares in 2024-25, while the overall production recorded a growth of 2.04 LMT (8.39%) in the same period. “The area under High/Medium Density Plantations expanded significantly from 880.89 hectares up to 2020-21 to 18,533.27 hectares ending November, 2024,” it added.

The survey suggested that the Horticulture sector contributes about 6-7% to the GSDP and employs 35 lakh people directly or indirectly supporting about seven lakh families.

“Handicrafts and handlooms are vital to J&K’s economy, providing significant employment to around 4.22 lakh artisans,” the survey said. “The sector includes renowned products such as Pashmina Shawls, Kashmiri Carpets, and various woodcrafts. The government focusses on skill development with 634 training centres. A unique QR Code-based certification system has been established which ensures authenticity of the crafts. Many crafts have received GI tags, and more are in the pipeline,” it added.