Ladakh, also known as the ‘Land of High Passes’, is the northernmost, largest and the second least populous UT of India and was formed on October 31, 2019. The UT shares borders with Himachal Pradesh and Jammu & Kashmir and its neighbouring countries are Pakistan, China and Afghanistan.

In Ladakh, tourism is one of the key areas that plays a vital role in generating revenue, jobs and overall growth of regions. Ladakh has been recognised for its diverse topology with high-altitude cold desert located in the Great Himalayas and picturesque locations since 1974.

Hemis, Alchi, Lamayuru, Shey and Thiksay are some of the most popular monasteries of Ladakh that attract both domestic and foreign tourists. The Pangong Tso lake and world’s highest motorable road, Khardongla (18,350 feet), are the main attractions for domestic tourists, while monasteries and mountains are hotspots for foreign tourists.

Total tourist arrivals to the UT reached 304,077 in 2021, out of which 303,023 were domestic tourists and 1,054 were foreign tourists. In 2020, total tourist arrivals in Ladakh stood at 7,869, of which 6,743 were domestic and 1,126 were foreign tourists. While in 2022, total tourist arrival stood at 5,31,396, out of which 5,10,137 were domestic tourists while 21,259 were foreign tourists. On April 20, 2020, the Ministry of Tourism conducted its 5th webinar on the rich heritage of Ladakh titled ‘Ladakh: Explore the Unexplored’ under the ‘DekhoApnaDesh’ webinar series.

As of May 2024, Ladakh (includes Jammu & Kashmir and Ladakh) had an installed power capacity of 3,557.24 MW. Ladakh has a potential to generate 35 GW from solar energy (32 GW in Leh (91%) and 3 GW in Kargil (9%)) and 4 GW from wind energy, annually.

Currently, only two roads connect Ladakh to the rest of India with limited access during winter. Ladakh has ~4,300 kms of road with 39% under PWD and 61% under BRO. In March 2021, the central government announced to a parliamentary panel that a ‘standalone project’ to build a critical road in Ladakh, along the border with China, is in progress.

The following are some key initiatives taken by the government to promote Ladakh as an investment destination:

• The Ministry of Civil Aviation announced that it will spend Rs. 480.33 crore (US$ 57.53 million) to facilitate the construction of a new building at Leh Airport.
• Ladakh received Rs. 1 crore (US$ 119,755) of Central Assistance under Per Drop More Crop scheme.
• As a result of the proactive measures undertaken by the Central Government 1,006 Industrial Units have been established in Ladakh, with a total investment of Rs. 122.71 crore (US$ 14.69 million).
• India has started building a strategic road along the Line of Actual Control (LAC) in eastern Ladakh, according to a report in the Times of India. The proposed road is being built from Chushul south of Pangong Tso and Demchok in eastern Ladakh.
• The Union Cabinet, in February 2023, approved the construction of the 4.1-km Shinkun La tunnel on the Nimu-Padam-Darcha road link to provide all-weather connectivity to the border areas of Ladakh. The tunnel will be completed by December 2025 at a cost of Rs. 1,681 crore (US$ 205.1 million).
• In May 2023, the central government gave its approval for the implementation of Revamped Distribution Sector Scheme (RDSS) in the Union Territory of Ladakh with a sanctioned cost of Rs. 687.05 crore (US$ 83.8 million). The scheme includes the grid connectivity of the Changthang region, downline infrastructure in the Zanskar region along with other loss reduction works in the Leh and Kargil districts of Ladakh.
• The Union Ministry of Health and Family Welfare in July 2022 informed the Lok Sabha that one medical college has been approved for Leh at a cost of Rs. 325 crore (US$ 39.7 million), which is to be shared between the Centre and the UT Administration of Ladakh in the ratio of 90:10.
• In a significant development, the Government of India is considering a major industrial development scheme, with a proposed financial outlay of Rs. 3,500 crore (US$ 427 million), for generating large-scale job opportunities in the private sector in the Union Territory of Ladakh.
• Defence Minister Mr. Rajnath Singh dedicated to the nation 75 infrastructure projects built by the Border Roads Organisation (BRO) at a function organised at Darbuk-Shyok-Daulet Beg Oldi (D-D-DBO) road in Ladakh in October 2022.
• In October 2021, BRO announced five major road infrastructure projects to boost connectivity in a Ladakh.
• In August 2021, BRO constructed the highest motorable road in Eastern Ladakh at 19,300 ft. to boost the socio-economic condition and promote tourism in the union territory.
• In June 2021, Minister of Defence Mr. Raj Nath Singh virtually inaugurated 11 bridges in Ladakh to boost border connectivity in the union territory.
• In July 2021, the Union Cabinet approved establishment of an Integrated Multipurpose Corporation in Ladakh to ensure socio-economic development of the union territory.
• To provide grid connectivity to the far-flung villages of Ladakh, the central government approved intra-state transmission project at a revised estimated cost of Rs. 1,309.71 crore (US$ 179.51 million) in May 2021.
• In June 2021, Convergence Energy Services Limited (CESL) signed an agreement with the Administration of Union Territory (UT) of Ladakh to implement energy-efficient programmes and solar power projects for clean & efficient energy and make the UT carbon neutral.
• In June 2021, CESL signed an MoU with the Union Territory of Ladakh to expand its decentralised solar portfolio in the UT.
• To make Leh self-sufficient in power, Ladakh, in collaboration with the Solar Energy Corporation of India (SECI), initiated a carbon- neutral initiative for implementation of 50 MW solar storage plant in the UT.
• In April 2021, a centre of excellence and wellness was established by the Indian Army in collaboration with Hindustan Petroleum Corporation Limited (HPCL) to guide the youth of Ladakh for one year in preparing them for various medical and engineering examinations.
• In June 2021, the Tribal Cooperative Marketing Development Federation of India (TRIFED) announced to implement Van Dhan Vikas Kendra (VDVK) in the Union Territory of Ladakh and operationalise the formerly sanctioned 10 VDVK clusters.
• In February 2021, an MoU was signed between Oil and Natural Gas Corporation (ONGC) and the UT administration of Ladakh to develop a geothermal field development project with a power potential of 200 MW.
• In January 2021, the central government and the Central Water Commission (CWC) sanctioned eight hydropower projects (144 MW) on the Indus river and its tributaries in Ladakh. These projects will be developed in the districts of Leh and Kargil in compliance with the Indus Waters Treaty with Pakistan.
• In January 2021, Union Sports and Youth Affairs Minister, Kiren Rijiju, inaugurated the first-ever Khelo India Zanskar Winter Sports Festival at Padum in Zanskar. The Union Sports Ministry plans to provide sports facilities in all regions of Ladakh and promote the UT as a centre for ice hockey.