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.

As per data from the tourism department of Ladakh, the total number of tourists visiting the region declined from 5,25,374 in 2023 to 3,75,393 in CY24 (till December 2024), marking a decrease of 1,49,981 tourists.

In a pioneering study, researchers from the Raman Research Institute (RRI) have recognized the Indian Astronomical Observatory (IAO) in Hanle, Ladakh, as the optimal location in India for satellite-based quantum communications.

For FY26, Central grants amount to Rs. 4,692 crore (US$ 546.3 million) will be allocated to Ladakh, representing a decrease from Rs. 1,266 crore (US$ 147.4 million) compared to FY25.

Union Minister of Road Transport & Highways, Mr. Nitin Gadkari, underscored the vital importance of infrastructure development for realizing a developed India, highlighting the Sonamarg tunnel as a historic milestone that will enhance all-weather connectivity and significantly facilitate travel between Srinagar and Ladakh.

As of February 2025, Ladakh had an installed power capacity of 3,589. 09 MW.

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:

• On June 28, 2024, Ramky Infrastructure Limited won contracts totaling Rs.131.19 crore (US$ 15.73 million) from PowerGrid Energy Services Limited to improve power distribution infrastructure in Ladakh, involving the construction of seven 66KV substations and the installation of 70 km of new distribution lines in Leh and Kargil districts.
• 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.