Jammu and Kashmir’s Economy Set for 7.06% Growth in 2024-25: Economic Survey Report

Published On: March 6, 2025

Jammu and Kashmir’s economy is poised for significant expansion, with a 7.06% growth in real Gross State Domestic Product (GSDP) and an 11.19% rise in nominal GSDP projected for the 2024-25 fiscal year. The Economic Survey Report (ESR) 2025 highlights the region’s positive economic trajectory, driven by job creation, rising revenues, and sectoral advancements.

Key Economic Growth Insights on Jammu and Kashmir’s Economy

The ESR report, presented in the J&K Assembly by Chief Minister Omar Abdullah, underscores the following economic achievements:

Nominal GSDP: Estimated at ₹2.65 lakh crore in 2024-25.
Real GSDP: Expected to reach ₹1.45 lakh crore.
Compound Annual Growth Rate (CAGR) for real GSDP (2019-2025): 4.89%, exceeding the 4.81% growth from 2011-2020.

Per Capita Income: A Regional Comparison

Jammu and Kashmir’s per capita income (NSDP) at current prices is projected to be ₹1,54,703 in 2024-25, while India’s national per capita income stands at ₹2,00,162.

Per capita income growth rate: 10.6% in 2024-25.
CAGR (2019-2024): 8.3%, outperforming Punjab (6.22%), Delhi (6.74%), and Himachal Pradesh (6%).
J&K’s share in India’s GDP remains at 0.8%, closely matching its 0.98% population share.

Sector-Wise Economic Contribution

The composition of Gross State Value Added (GSVA) in 2024-25 is:

Primary Sector (Agriculture, Forestry, Fisheries, etc.): 20.00%
Secondary Sector (Manufacturing, Construction, etc.): 18.30%
Tertiary Sector (Services, Trade, Tourism, etc.): 61.70%

Inflation Trends in Jammu and Kashmir

Inflation in Jammu and Kashmir increased from 4.3% in 2023 to 4.5% in 2024, while national inflation dropped from 5.7% to 5.0%. Over the past five years (2019-2024), J&K’s inflation has ranged between 3.8% and 4.5%, aligning with national trends (3.7% to 5.0%).

Revenue Collection and Fiscal Performance of Jammu & Kashmir

J&K’s revenue collection has witnessed remarkable growth:

Total revenue (April-Dec 2024): ₹15,737.80 crore (77% of FY24’s total ₹20,333.55 crore).
Tax revenue: ₹10,624.09 crore (76% of FY24’s ₹13,903.22 crore).
Non-tax revenue: ₹5,113.71 crore (80% of FY24’s ₹6,430.33 crore).
Non-tax revenue contribution: 32% of total revenue in FY25.
Power tariff revenue: Rose from 56% to 67% of non-tax revenue since FY22.

Major Revenue Sources of Jammu & Kashmir

Taxes on vehicles: 96% increase.
Power sector revenue: 67% growth.
GST collections: 36% rise.
Water user charges: 33% increase.
Excise duty: 14% growth.

Government Expenditure Trends

Revenue expenditure (April-Dec 2024): ₹49,828 crore (75% of FY24’s total ₹66,621 crore).
Capital expenditure (April-Dec 2024): ₹11,538 crore (51% of FY24’s ₹22,531 crore).

Employment and Labour Market Growth

The unemployment rate in J&K declined to 6.1% in 2023-24, improving from 6.7% in 2019-20.

Labour Force Participation Rate (LFPR): 64.3% in 2023-24.
Worker Population Ratio (WPR): 60.4% in 2023-24.
Self-Employment Schemes (SESS): 40,778 new units, generating 1.16 lakh jobs.
Registered unorganised workers (e-SHRAM portal): 35.28 lakh as of November 2024.

Banking Sector Performance

Gross Non-Performing Assets (NPA): Reduced from 5.71% in Dec 2022 to 4.13% in March 2024.

Agriculture and Food Production Growth

J&K’s agricultural sector has shown steady growth:

Food crop production: 7.12% increase from 19,515 thousand quintals to 20,904 thousand quintals.
Vegetable production: Reached 520 thousand quintals in 2023-24, nearing self-sufficiency.
Shift towards high-value crops, organic vegetables, and exotic varieties.

Government Initiatives for Agricultural Development

Under the Holistic Agriculture Development Plan, the J&K government is investing ₹5,013 crore across 29 projects over five years. Expected outcomes include:

₹28,000 crore contribution to GSDP.
Creation of 2.88 lakh sustainable jobs.
Support for 13 lakh farming families.
Skill training for 2.5 lakh youth via 19,000 new enterprises.

Jammu and Kashmir’s economy is experiencing robust growth, fueled by rising GSDP, increased revenue, employment expansion, and agricultural advancements. With a 7.06% real GSDP growth forecast and strategic government initiatives, the region is on a path of sustained economic progress. Continued investment in infrastructure, private sector engagement, and policy support will further strengthen J&K’s economic landscape.

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