Jammu and Kashmir (J&K) is the northern-most state of India and shares its borders with Himachal Pradesh and Punjab, and the neighbouring countries of Pakistan, China and Afghanistan. The state consists of three regions: Jammu, the Kashmir valley and Ladakh.
At current prices, the gross state domestic product (GSDP) of Jammu & Kashmir was about US$ 13.6 billion in 2012–13.
Jammu and Kashmir’s handicrafts are world-famous and it has emerged as a huge industry. Handicraft exports increased from US$ 185 million in 2010–11 to US$ 303 million in 2011–12.
The state is a global tourist destination. In addition to traditional recreational tourism, there is vast scope for adventure tourism, pilgrimage tourism, spiritual tourism, and health tourism. The state witnessed influx of 12.3 million tourists in 2012.
The state has agro-climatic conditions best suited for horticulture and floriculture. Horticulture is the bulwark of the rural economy – it provides employment to thousands. The floriculture industry supplies flowers to both domestic and international markets.
The state has an industrial policy that offers attractive incentives along with a single-window clearance mechanism. Land is allotted at concessional rates in industrial areas, on lease for 90 years. The cost of setting up operations is comparatively lower than other states.