Jammu, February 5, 2026 : The Union Territory of Jammu and Kashmir’s economy is projected to grow at 5.82 per cent in 2025–26, according to the Economic Survey Report 2025–26 tabled in the Legislative Assembly by Chief Minister Omar Abdullah on Thursday.
The report highlights that Jammu and Kashmir recorded a compound annual growth rate (CAGR) of 4.47 per cent in real Gross State Domestic Product (GSDP) between 2019–20 and 2024–25, reflecting economic resilience and steady post-pandemic recovery. Notably, the growth rate during this period was higher than Delhi and Himachal Pradesh and marginally above Haryana, the report said.
As per the survey, the size of the J&K economy is estimated at ₹2.86 lakh crore in nominal terms and ₹1.50 lakh crore in real terms. The Union Territory contributes around 0.8 per cent to the national GDP.
The report also noted a significant improvement in per capita income, which is projected at ₹1,68,243 in 2025–26, registering a higher growth rate than several northern states and UTs, including Delhi, Himachal Pradesh, Punjab, Chandigarh and Haryana during the review period.
Sectoral Performance
Sector-wise, the primary sector is estimated to contribute 20.45 per cent to Gross State Value Added (GSVA) in 2025–26 and continues to be a key livelihood provider, employing about 42.99 per cent of the workforce.
The secondary sector is projected to contribute 18.52 per cent, while the tertiary sector remains the largest contributor with 61.02 per cent of GSVA.
Inflation, Revenue and Employment
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 of ₹13,521 crore were realised up to November 2025, accounting for 64 per cent of the total revenue collected in the previous financial year.
The unemployment rate declined from 6.7 per cent in 2019–20 to 6.1 per cent in 2023–24, while the labour force participation rate and worker population ratio improved to 64.3 per cent and 60.4 per cent, respectively.
Under employment generation schemes such as PMEGP and JKREGP, more than 10,800 units were established in 2024–25, generating self-employment opportunities for around 85,000 youth. Additionally, over 36 lakh unorganised workers have been registered on the e-SHRAM portal till November 2025.
Agriculture, Horticulture and Industry
The survey noted a structural shift in agriculture towards high-value crops, organic farming and exotic varieties under initiatives like the Holistic Agriculture Development Programme (HADP) and J&K Competitiveness Improvement Project (JKCIP).
Horticulture registered strong growth, with the area under major crops expanding to 3.47 lakh hectares and overall production increasing by 12.5 per cent. Exports of almonds and walnuts reached ₹602.53 crore in 2024–25.
Industrial growth remained robust, with 2,227 industrial units becoming operational over the last seven years, attracting investments worth ₹15,940 crore, the report said.
Tourism and Social Indicators
Tourism continued to be a major growth driver, with 1.78 crore tourists visiting Jammu and Kashmir in 2025, including 36,000 foreign tourists.
On the social front, the neonatal mortality rate declined to 9.8, and the infant mortality rate fell to 14, while life expectancy increased to 74.3 years. Institutional deliveries touched 99.7 per cent, and full immunisation coverage reached 100 per cent.
Under the Ayushman Bharat–PMJAY–SEHAT scheme, over 87.64 lakh Golden Cards have been issued, and nearly 19 lakh treatments have been provided, resulting in savings of approximately ₹3,435 crore.
Education and Power Sector
In education, total enrolment exceeded 26.17 lakh students in 2024–25, with a notable decline in dropout rates and improved transition rates across all schooling levels.
The report also highlighted that hydropower generation capacity in the Union Territory is set to double to 3,014 MW by 2028, while transmission and distribution capacity has increased by 44 per cent over the past six years.
