For decades, the narrative surrounding Jammu & Kashmir (J&K) centered on its geographical challenges and historical complexities. However, the 2024-25 Economic Survey shatters these outdated perceptions, revealing a Union Territory (UT) spearheading a rapid economic metamorphosis. Despite global economic headwinds that have stifled growth elsewhere, the data highlights a region dismantling hurdles and outperforming several of its established northern neighbors.
Economic Resilience: Outperforming the Neighbors
J&K’s economic engine is operating with remarkable momentum, with Real GSDP projected to grow at 7.06% in 2024-25. This resilience is anchored by a dominant Tertiary (Service) sector, which accounts for 61.7% of the Gross State Value Added (GSVA), while the Primary and Secondary sectors contribute 20% and 18.3% respectively.
The region’s Per Capita Income (PCI) is narrowing the gap with the national average (NNI) at an accelerating pace. Between 2019-20 and 2023-24, J&K achieved a PCI CAGR of 8.3%, significantly outstripping Punjab (6.22%), Delhi (6.74%), and Himachal Pradesh (6%). Consequently, J&K’s PCI has climbed to 77.3% of the national average, up from 71.9% a decade ago.
"In the fiscal year 2024-25, J&K has demonstrated commendable economic performance... indicating improved economic well-being for the residents of the J&K." — Preface, Economic Survey 2024-25
The Digital Leap: From Red Tape to #1 in e-Services
The UT has pivoted toward a "Digital Jammu and Kashmir" model, now ranking first among all States/UTs in the number of online services. The e-UNNAT portal offers 1,166 integrated services, while the SAMADHAN platform maintains a 94% disposal rate for public grievances. This shift ensures that 100% of these services are accessible without visiting a government office.
Beyond mere service delivery, the administration is enforcing data-driven accountability. J&K is the first in India to implement the District Good Governance Index (DGGI) alongside the Aspirational Blocks and Panchayat Development Programmes. These localized indices ensure that development reaches every village, shifting the governance model from centralized administration to transparent, performance-based tracking.
Infrastructure as a Multiplier: Tunnels, Rails, and Energy
Physical and digital connectivity are acting as the UT’s primary economic multipliers. The Delhi-Amritsar-Katra expressway is set to reduce travel time to just six hours, while the extension of the railway to Sangaldan and full section electrification marks a historic milestone. The completion of the Sonamarg tunnel in July 2024 now ensures strategic, year-round access.
The transformation extends to the skies and the power grid. J&K has introduced night landing facilities at both Jammu and Srinagar airports and is currently extending Jammu Airport by 908 Kanals. Furthermore, the UT is doubling its hydel-power generation capacity with 3,014 MW of additional power projects underway, providing the energy foundation required for long-term industrial stability.
Unexpected Longevity: A National Leader in Life Expectancy
J&K’s quality-of-life indicators are perhaps the survey's most surprising reveal. Life Expectancy at Birth has reached 74.3 years—the highest in India after Kerala and Delhi. This is substantiated by a massive healthcare expansion, including the hiring of 10,919 medical professionals and the issuance of 86.12 lakh Golden Cards under the AB-PMJAY-SEHAT scheme.
Most notably, the UT has achieved global Sustainable Development Goal (SDG) targets for mortality "well ahead of time." The Neonatal Mortality Rate has dropped to 9.8 and the Under-5 Mortality Rate to 18.5. This systemic success reflects a robust healthcare workforce and infrastructure that now includes two new AIIMS facilities.
The Tourism Explosion and the 'High-Value' Pivot
Tourism hit an all-time high of 2.36 crore visitors in 2024, a revival the survey explicitly links to the 3rd G20 Tourism Working Group meeting held in Srinagar in May 2023. This global exposure has reinvigorated the sector, but the UT is also diversifying its economic base through the Holistic Agriculture Development Plan (HADP).
With an investment of Rs. 5,013 crore, J&K is shifting from subsistence farming toward market-oriented "Agricultural Entrepreneurship." This plan focuses on high-value, GI-tagged products that command global premiums:
* Mushqbudji Rice
* Sulai Honey
* Bhaderwah Rajmash
* Ramban Anardana
Conclusion: A Question of Sustainability
The 2024-25 Survey serves as a "testament to the resilience and potential" of the region. A critical indicator of sustainability is the shift in Non-Tax Revenue, which has grown from 29% to 32% of total revenue, signaling the UT's increasing ability to fund its own developmental future.
As Jammu & Kashmir continues to transition from a subsistence economy to a digital-first, infrastructure-heavy powerhouse, a compelling question remains for the rest of the country: Could this model of rapid, data-driven accountability serve as the definitive blueprint for other de
veloping regions facing geographical hurdles?
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