Trade Analytics

Industrial Development & Economic Growth in Jammu & Kashmir

Latest update: May, 2018

Economic Snapshot
Per capita Income

 

May, 2018

Jammu and Kashmir (J&K) is the northernmost state of India 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 state’s GSDP grew at a CAGR of 10.30 per cent, during 2011-12 to 2017-18. The GSDP is expected to grow at 11.71 per cent (in Rs) by 2018-19 to reach Rs 1.57 trillion (US$ 24.42 billion). The state’s NSDP increased at a CAGR (in Rs) of 10.02 per cent from 2011-12 to 2017-18. The state’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 the state. Food processing and agro-based industries (excluding conventional grinding and extraction units) thrive in the state. J&K has an ideal climate for floriculture and an enormous assortment of flora and fauna. The state 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 state 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 following are some of the major initiatives taken by the government to promote Jammu & Kashmir as an investment destination:

  • J&K’s handicrafts are world famous, on the back of which, handicraft industry of the state witnessed huge growth. Handicraft exports from Kashmir for 2017-18* is Rs. 514.20 crore (US$ 79.78 million)
  • All 6,337 inhabited villages in the state have been electrified as on 30th April 2018
  • 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 state at a cost of US$ 3.42 million. The tunnels will have all weather access, and will be completed by 2024.
  • The Department of Industrial Policy & Promotion (DIPP) has extended a Special Incentive Package. This includes 100 per cent premium reimbursement under Central Comprehensive Insurance Subsidy Scheme to all units on expansion over the next five years. The DIPP also allowed capital investment subsidy of 15 per cent on investment in plant and machinery; the subsidy is applicable for five years from the date of commencement of production
  • Under the ‘Apple Insurance Scheme’, the state government has decided to construct a chain of compressed air stores in each district of the state in order to introduce modern pre- and post-harvest technologies. The state is a leading producer of apples and walnuts; the total apple production, in 2017-18P, stood at around 1.74 million metric tonnes.
  • The state has established the Jammu & Kashmir Handicrafts Sales & Export Promotion Corporation and Jammu and Kashmir State Handloom Development Corporation to promote development and growth of the handicraft sector.

Note: * - Till September 2017, P - Provisional

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Jammu and Kashmir