Ladakh

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.

In 2023, Ladakh received 36,315 foreign and 4,89,059 domestic tourists, while in 2024, the numbers stood at 39,704 foreign and 3,36,682 domestic visitors.

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 September 2025, Ladakh (Including Jammu and Kashmir) had an installed power capacity of 3,472.61 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 15, 2025, the Central Government, through Union Finance and Corporate Affairs Minister, Ms. Nirmala Sitharaman, virtually inaugurated multiple infrastructure projects in the Union Territory of Leh, Ladakh signalling a renewed focus on regional development, enhanced connectivity, digital integration and financial inclusion in the region.
• On April 8, 2025, the Government of India announced a 13 GW hybrid renewable energy park in Ladakh, combining solar, wind and battery storage across the Pang, Debring and Kharnak areas. SECI is also developing a 25 MW AC solar project with 40 MWh storage at Taru, Leh, as part of multi-GW preparation.
• On May 1, 2025, the union territory of Ladakh received approval for a new medical college at Spituk-Pharka in Leh district, marking the region’s first such institution with a 350-bed hospital block and dedicated student hostel. The college is expected to admit its first MBBS students in the next academic year.
• 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.

Ladakh is a strategically significant and high-potential union territory, combining tourism, renewable energy, and infrastructure-led development. Its unique high-altitude landscape drives strong domestic and foreign tourist inflows, while exceptional solar and wind conditions position Ladakh as a future clean energy hub, supported by multi-GW renewable, storage, and hydrogen projects. Large central grants and landmark investments in roads, tunnels, railways, airports, power distribution, and digital connectivity are transforming all-weather access and strategic mobility. With emerging opportunities in eco-tourism, traditional crafts, agriculture, MSMEs, and green industries, Ladakh is steadily evolving into a sustainable growth and investment destination.