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Industrial Development & Economic Growth in Jammu & Kashmir

Latest update: March, 2020

Economic Snapshot
Per capita Income

 

March, 2020

Jammu and Kashmir (J&K) is the Union Territory of India (UT) located in 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. The J&K’s GSDP grew at a CAGR of 10.30 per cent, during 2011-12 to 2018-19. The GSDP is expected to grow at 11.71 per cent (in Rs) by 2018-19 to reach Rs 1.17 trillion (US$ 16.74 billion). The UT’s NSDP increased at a CAGR (in Rs) of 10.02 per cent from 2011-12 to 2017-18. The J&K’s NSDP is expected to reach Rs 1.34 trillion (US$ 20.73 billion) in 2018-19.

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 exports potential, the industry has been receiving priority attention of the government. The U&T 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.

Total exports from Jammu and Kashmir stood at US$ 196.43 million during 2018-19. During 2019-20 (up to December 2019), exports 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 of Rs 346 crore (US$ 49.51 million) proposed in J&K.
  • A project namely Augmentation of Water Supply to Jammu City from River Chenab costing, Rs 886 crore (US$ 126.77 million) stands formulated for providing additional drinking water of 240 MLD to Jammu City which has been submitted to Ministry of Urban Development.
  • J&K’s handicrafts are world famous, on the back of which, handicraft industry of the UT witnessed huge growth.
  • 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 the Department for Promotion of Industry & Internal Trade (DPIIT), cumulative FDI inflows, during April 2000 to September 2019, were 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; the 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).
  • Tourist arrival in the Union Territory stood at 14.32 million in 2017(P) out of which 14.24 million were domestic tourists and 79.77 thousand were foreign tourists.

 

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

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