Jammu and Kashmir Economic Survey Report 2025–26 Highlights Steady Post-Pandemic Recovery

The Economic Survey Report 2025–26, recently tabled in the Legislative Assembly, projects a 5.82% real-term growth in Jammu and Kashmir’s economy for the upcoming fiscal year. This indicates a positive trend of recovery post-pandemic and improved fiscal management within the region.

According to the report, the nominal Gross State Domestic Product (GSDP) of the Union Territory is expected to grow by 8.89% in 2025–26, reaching a total of nearly Rs 2.86 lakh crore. This growth follows a compound annual growth rate (CAGR) of 4.47% between 2019–20 and 2024–25, showcasing a sustained recovery from the pandemic-induced slowdown.

The survey highlights the growth of per capita income to Rs 1,68,243 in 2025–26, reflecting a consistent upward trajectory over the past five years. This growth outpaces several northern states and Union Territories, indicating positive economic development within Jammu and Kashmir.

Sector-wise Growth and Fiscal Management

Within the Gross State Value Added (GSVA), the tertiary sector holds the largest share at 61.02%, followed by the primary sector at 20.45% and the secondary sector at 18.52%. While agriculture remains a significant source of employment, growth in industry, infrastructure, and services has led to greater economic diversification.

On the fiscal front, the UT has seen improved revenue mobilization and expenditure management. Revenue receipts of Rs 13,521 crore were recorded up to November 2025, driven by higher GST, excise, and non-tax revenues. Capital expenditure has been focused on infrastructure development and completion of ongoing projects, with increased transparency through digital platforms like BEAMS and GeM.

Progress in Agriculture, Horticulture, and Industry

The survey highlights advancements in agriculture and horticulture, attributed to higher foodgrain and fruit production, expansion of high-density plantations, and increased farmer participation in Farmer Producer Organisations. Market access has improved through e-NAM integration, while industrial development has been supported by policy reforms and new investment proposals.

Jammu and Kashmir’s achievement of a ‘Top Achiever’ ranking in Ease of Doing Business nationally underscores the region’s commitment to fostering a conducive business environment.