Jammu and Kashmir (J&K) has recently reported a notable economic growth rate of 9.5 percent, with the Gross State Domestic Product (GSDP) estimated at ₹2.45 lakh crore for the fiscal year 2023-24, up from ₹2.20 lakh crore in the previous year. Lieutenant Governor Manoj Sinha highlighted this achievement in a public address on January 25, 2025, emphasizing the importance of peace and harmony in fostering development. He also noted that J&K has ranked second among Union Territories in the Sustainable Development Goals (SDG) India Index for 2023-24, reflecting progress in various socio-economic metrics. Additionally, the tourism sector has seen significant activity, with 2.36 crore visits recorded until November 2024, and the Gulmarg Gondola generating ₹103 crore in revenue during 2024. [f14e13ef]
Despite previous concerns about financial distress, the region is witnessing significant infrastructure advancements, including the Jammu-Akhnoor-Poonch National Highway, the Srinagar-Baramulla-Uri National Highway, and the Zojila tunnel project. Furthermore, 889 industrial units have commenced groundwork, with 324 expected to begin production within the year. Over the past four to five years, the government has made 40,000 job appointments, aiming to bolster employment opportunities in the region. The Kashmir Marathon, held on October 20, 2024, attracted over 1,800 runners, showcasing the growing interest in local events. [f14e13ef]
However, challenges remain as J&K continues to grapple with issues such as energy poverty and a struggling real estate market. Earlier reports indicated that many businesses were facing bankruptcy, and the region's reliance on government jobs and agriculture has raised concerns about long-term economic sustainability. The fiscal deficit for the region is projected at ₹10,855 crore, which, while lower than some larger states, still poses a challenge to economic stability. [28535da6][f7f5c897][fa75cc84][060ca6a7][240db48a]
The Kashmir Chamber of Commerce and Industry (KCCI) has been advocating for improved marketing strategies and participation in trade fairs to revitalize the handicraft sector, which is crucial for local employment and exports. As J&K navigates these economic complexities, the interplay between government initiatives, local industries, and overall economic sentiment will be vital in determining the region's future trajectory. [28535da6][f7f5c897][fa75cc84][060ca6a7][240db48a]