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.
The natural beauty and picturesque locations have made it a favoured destination for tourists across the world. Jammu is famous for its temples, while the Kashmir Valley is known for its lakes and gardens. During 2015-16, total number of foreign tourists in J&K was recorded to be 58,568. J&K expects to witness 22.7 million tourist arrivals in FY 2020 compared to 9.5 million arrivals in FY 2014.
J&K has agro-climatic conditions best suited for horticulture and floriculture. Horticulture is the mainstay of the rural economy, providing employment to large number of local inhabitants. The state’s share in the overall apple production in India increased from 65.97 per cent in 2013-14 to 69.15 per cent in 2015-16, with the overall production of apple in the state reaching around 2.00 million metric tonnes (MT) in 2015-16. The state is also a major exporter of walnut & its international market share is about seven per cent.
At current prices, the gross state domestic product (GSDP) of Jammu & Kashmir was US$ 17.73 billion in 2015-16 and has expanded at a compound annual growth rate (CAGR) of 10.2 per cent from 2004-05 to 2015-16. As of November 2015, J&K had a total installed power generation capacity of 3,142.34 Megawatts (MW), comprising 1579.81 MW under central utilities, 1511.53 MW under state utilities and 51.00 MW under private utilities.
The state government 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. The Skill Development Policy 2012-17 and the Sher-e-Kashmir Employment & Welfare Programme for the Youth 2009 are the policies undertaken by the government to develop the skills of the indigenous people of the state and offers better employment opportunities. J&K stands 29th among Indian states in rankings based on ease of doing business and reforms implementation, according to a study by the World Bank and KPMG.
The state (including Chandigarh, Punjab and Haryana) has attracted Foreign Direct Investment (FDI) equity inflows worth US$ 6 million during the period April 2000 to March 2016, according to data released by Department of Industrial Policy and Promotion (DIPP).