The economy of Kashmir is largely a developing one. The per capita income and provincial GDP estimates of Azad Kashmir are comparatively underrated when compared with development in other regions of the country, although Azad Kashmir notably has a literacy rate that is substantially above the national average.
Azad Kashmir’s economy is heavily dependent on agriculture, but also relies on remittances sent each year by the members of the large Kashmiri diaspora. The Kashmiri diaspora in the United Kingdom have contributed greatly to the development of Azad Kashmir through their in-flow of remittances.
In the southern districts, many men have been recruited into the Pakistani Armed Forces. Other locals travel to countries in Europe or the Middle East where they work in labour-oriented jobs. The local tourism industry has potential although it is underdeveloped.
Neeulm Valley Challenges faced by Azad Kashmir’s economy include the devastating 2005 Kashmir earthquake, the effects of which the region is still recovering from.As of 2022, the GDP of Azad Jammu and Kashmir was estimated to be US$6.6 billion, giving per capita income of 1512 dollar USD,[3] above from Sept 2013, when Azad Kashmir’s GDP was estimated at $3.2 Billion.
Pideorganised a two day conference on unlocking the potential of AJK economy at AJK University auditorium … Economy of jammu and Jammu And Kashmir Jammu and Kashmir is the largest producer of apples, walnuts, and cherries in India. It is also the largest producer of saffron, one of the most expensive Jammu And Kashmir State Presentation Jun, 2024Jammu and Kashmir (J&K) is a Union Territory (UT) of India, located in the country’s northern part, and a global tourist destination.
In addition to traditional recreational tourism, a vast scope exists for adventure, pilgrimage, spiritual, and health tourism. The economy is primarily services based and agri-oriented at current prices, the GSDP of J&K has been estimated at Rs. 2.30 trillion (US$ 27.70 billion) in 2023-24. The UT’s GSDP increased at a CAGR of 7.53% between 2018-19 and 2023-24.
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 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 March 2024, J&K had a total installed power-generation capacity of 3,850.23 MW, comprising 2,159.07 MW under central utilities, 1,553.67 MW (state utilities) and 137.49 MW (private utilities). Of the total installed power-generation capacity until March 2024, 2,321.88 MW was contributed by hydropower, 1,174.21 MW (thermal power), 286.16 MW (renewable power) and 67.98 MW (nuclear power). Total exports from J&K stood at US$ 192.86 million in FY24.
In 2023, Jammu and Kashmir became a global tourism hub, welcoming 2.02 crore tourists and over 50 thousand foreign visits. The following are some of the major initiatives taken by the Government to promote Jammu & Kashmir as an investment destination: Union Minister for Road Transport & Highways, Mr. Nitin Gadkari allocated of Rs. 1404.94 crore (US$ 169 million) for the Widening and Strengthening project of the Rafiabad – Kupwara – Chowkibal – Tangdhar – Chamkot section of National Highway-701.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), cumulative FDI inflow in J&K was valued at US$08 million between October 2019- March 2024. Under the State Budget 2023-24, Rs. 2,928.04 crore (US$ 357.4 million) has been allocated for housing and urban development. Raw silk production stood at 98 MT in FY 2021-22 in Jammu & Kashmir.
In FY23, exports of drug formulations and biologicals from the union territory stood at US$ 54.44 million, which accounted for 25.6% of the total exports. Total tourist arrivals to the UT reached 113.16 million in 2021 In 2021-22, total production of horticulture crops in the UT is expected to be 3,580.82 thousand metric tonnes. In 2021-22, the total production of vegetables and fruits in the state was estimated at 1,338.27 thousand metric tonnes and 2,237.87 thousand metric tonnes, respectively. In March 2022, the UAE pledged to invest Rs. 3,000 crore (US$ 391.8 million) in J&K. 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 FY23, 543 new projects with a total cost of Rs. 2,237 crore (US$ 292.2 million) will be sanctioned with NABARD funding.
An elevated light metro rail system is expected to be rolled out in 2022-23 and is likely to be completed in 2026. This will reduce the traffic congestion in Srinagar & Jammu. 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 KheloIndia 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).
