Jammu and Kashmir Presentation and Economic Growth Report | IBEF

Jammu and Kashmir (J&K) is a Union Territory (UT) of India, located in the country’s northern part, and a global tourist destination. In addition to traditional recreational tourism, a vast scope exists for adventure, pilgrimage, spiritual, and health tourism.

The economy is primarily services based and Agri-oriented. Gross State Domestic Product (GSDP) grew at a CAGR of 9.63 per cent between 2015-16 and 2018-19 to reach Rs 1.57 trillion (US$ 24.42 billion). J&K’s NSDP increased at a CAGR (in Rs) of 9.51 per cent from 2015-16 to 2018-19 and reached Rs 1.29 trillion (US$ 18.49 billion).

A vast natural resource base has enabled J&K to develop land for cultivating major fruits. With varied agro-climatic conditions, the scope for horticulture is significantly high in J&K. Food processing and agro-based industries (excluding conventional grinding and extraction units) thrive in the UT. J&K has an ideal climate for floriculture and an enormous assortment of flora and fauna. J&K has Asia’s largest tulip garden.

J&K’s handicrafts are world famous and the traditional handicraft industry has emerged as a large industry. Due to its large employment base and export potential, the industry has been receiving priority attention of the government. The UT is also famous for its small-scale and cottage industries such as carpet weaving, silks, shawls, basketry, pottery, copper and silverware, papier-mâché, and walnut wood. The cottage handicrafts industry provides direct and gainful employment to around 340,000 artisans.

As of March 2020, J&K had a total installed power generation capacity of 3,417.13 megawatt (MW), comprising 1,812.35 MW under central utilities, 1,535.48 MW under UT utilities, and 69.30 MW under private utilities.

Total export from Jammu and Kashmir stood at US$ 196.43 million during 2018-19. During 2019-20 (up to December 2019), export from the UT stood at US$ 146.57 million.

The following are some of the major initiatives taken by the Government to promote Jammu & Kashmir as an investment destination:

• In 2019, ten investments worth Rs 346 crore (US$ 49.51 million) were proposed in J&K.
• J&K 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.
• National Highway Infrastructure Development Corporation (NHIDCL) is developing five tunnels in the UT at a cost of US$ 3.42 million. The tunnels will have all weather access and will be completed by 2024.
• According to Department for Promotion of Industry and Internal Trade (DPIIT), cumulative FDI inflow during April 2000 to September 2019 was valued at US$ 6 million.
• The Kashmir region is known for its horticulture industry. The industry plays a vital role in the J&K’s economic development. Total production of horticulture crops in the UT in 2018-19** stood at 3.96 million tonnes with 414.47 thousand hectares area under production.
• The UT is a leading producer of apples and walnuts. Total apple production in 2017-18P stood at around 1.74 million metric tonnes.
• About 150,000 metres of silk cloth is produced per annum in J&K. During 2018-19(P), 118 MT of raw silk was produced in the J&K and had a production target of 170 MT for 2019-20(T).
• In 2018, foreign and domestic tourist arrival reached 139,520 and 17.07 million, respectively.

Note: P – Provisional, T - Target, MT – Million Tonnes, ** - 2018-19 (3^rd advanced estimate)

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