J&K economy likely to grow at 5.82% in 2025-26: Survey

With the economic condition of Jammu and Kashmir showing steady improvement in 2025–26, the Union Territory’s Real Gross State Domestic Product (GSDP) is expected to grow by 5.82 per cent.

As per the Economic Survey 2025–26 released by the J&K government in the Legislative Assembly on Thursday, per capita income is estimated at Rs 1,68,243 in 2025–26 in nominal terms (advance estimates), compared to the national per capita income of Rs 2,19,575.

“The Real GSDP of J&K is estimated to grow by 5.82 per cent, while nominal GSDP is projected to grow by 8.89 per cent in 2025–26. The size of the economy is estimated at approximately Rs 2.86 lakh crore in nominal terms and Rs 1.50 lakh crore in real terms,” the report states.

“Comparative analysis of per capita income (PCI) further indicates that J&K’s per capita income in nominal terms recorded a higher growth rate than several northern states and Union Territories during the period 2019–20 to 2024–25. During this period, J&K’s per capita income grew at a CAGR of 8.81 per cent, which is higher than Himachal Pradesh (6.54%), Delhi (6.74%), Punjab (7.46%), Chandigarh (8.21%) and Haryana (8.72%),” the report highlights.

J&K contributes about 0.8 percent to the national GDP, broadly reflecting its population share. The primary, secondary and tertiary sectors are estimated to contribute 20.45%, 18.52% and 61.02%, respectively, to GSVA in 2025–26.

According to the report, inflation in J&K has decreased from 4.5% in 2024 to 3.8% in 2025, showing an overall decline of 0.7 percentage points.

The unemployment rate in J&K declined to 6.1% in 2023–24, while the labour force participation rate and worker population ratio improved to 64.3% and 60.4%, respectively.

“The unemployment rate on usual status has declined from 6.7% in 2019–20 to 6.1% in 2023–24. This improvement is also reflected in the Labour Force Participation Rate (LFPR) and Worker Population Ratio (WPR), which have risen to 64.3% and 60.4%, respectively, showcasing enhanced employment opportunities and economic activity in J&K,” the report reads.

As many as 10,814 units have been established under PMEGP and JKREGP, providing self-employment to about 0.85 lakh youth during 2024–25. Meanwhile, 36.08 lakh unorganised workers had been registered on the e-SHRAM portal as of November 2025.

Food production in J&K has also witnessed an increase during the past year. “Total food crop production increased by 1.33% during the last one year, and the region has progressed towards self-reliance in vegetable production,” the report notes.

“The agriculture sector in J&K is shifting towards high-value crops, organic vegetables and exotic varieties, with the implementation of major initiatives such as the Holistic Agriculture Development Programme (HADP) and the J&K Competitiveness Improvement Project (JKCIP) to modernise agriculture, ensure higher productivity and promote eco-friendly farming methods for long-term sustainability,” it adds.

The sex ratio at birth recorded a significant improvement from 923 to 976. The percentage of fully immunised children against vaccine-preventable diseases has increased to 100 percent, while institutional births rose to 99.7 percent. Life expectancy at birth in the Union Territory reached 74.3 years, the highest in the country after Kerala and Delhi.

In the education sector, total enrolment exceeded 26.17 lakh students in 2024–25, with a sharp decline in dropout rates and improved transition rates across schooling levels.

The report also highlighted that hydropower generation capacity is being doubled to 3,014 MW by 2028, while transmission and distribution capacity has increased by 44 per cent over the last six years.