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. The Gross State Domestic Product (GSDP) increased at a CAGR (in Rs.) of 8.51% between 2015-16 and 2020-21 to reach Rs. 1.76 trillion (US$ 24.28 billion). J&K’s NSDP increased at a CAGR (in Rs.) of 8.61% from 2015-16 to 2020-21 and reached Rs. 1.49 trillion (US$ 20.49 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 April 2021, J&K* had a total installed power generation capacity of 3482.11 MW, comprising 1866.08 MW under central utilities, 1535.98 MW (UT utilities) and 80.05 MW (private utilities).

Total export from J&K stood at US$ 188.18 million in 2019-20. In FY21 , exports from J&K stood at US$ 159.64 million.

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

• According to the Department for Promotion of Industry and Internal Trade (DPIIT), cumulative FDI inflow in J&K was valued at US$ 0.21 million between October 2019 and March 2021.
• 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.
• In 2019-20, total production of horticulture crops was expected to be 3,912.91 thousand metric tonnes and area under production was 400.25 thousand hectares. In 2019-20, the total production of vegetables and fruits was estimated at 1337.12 thousand metric tonnes and 2541.16 thousand metric tonnes, respectively.
• In April 2021, the government of Jammu & Kashmir signed 456 memoranda of understanding (MOUs) with various firms for a potential investment worth Rs. 23,152 crore (US$ 3.17 billion).
• In February 2021, Prime Minister Mr. Narendra Modi inaugurated the second Khelo India Winter Games in Gulmarg with the objective of making Jammu and Kashmir a hub for winter sports.
• In October 2020, construction work has started on the Zozila Tunnel at J&K. The tunnel will provide all-weather connectivity on NH-1 between Srinagar Valley and Leh (Ladakh Plateau) and will bring about an all-round Jammu & Kashmir economic and sociocultural integration (UTs of J&K and Ladakh). It involves building a 14.15-km long tunnel under the Zojila pass on NH-1, linking Srinagar and Leh via Dras & Kargil.
• About 150,000 metres of silk cloth is produced per annum in J&K. During FY20, 117 MT of raw silk was produced in the J&K and had a production target of 142 MT for FY21.
• In 2019, foreign and domestic tourist arrivals stood at 57,920 and 16.16 million, respectively.

Note: P - Provisional, T - Target, MT - Million Tonnes, * Including Ladakh Union Territory