Jammu and Kashmir economy expected to grow at 7.06% in 2024-25: Economic Survey

Jammu: The economy of Jammu and Kashmir is projected to grow at 7.06 per cent in real terms, while the nominal Gross State Domestic Product (GSDP) is expected to rise by 11.19 per cent in 2024-25, according to the Economic Survey Report (ESR) for 2025.

The report said that J&K has shown significant progress, with the unemployment rate declining to 6.1 per cent in 2023-24 from 6.7 per cent in 2019-20.

Chief Minister Omar Abdullah, who also serves as the finance minister, tabled the report in the J&K Assembly on Thursday.

The report provides an in-depth analysis of the region's economic performance, development progress, and future outlook, offering valuable insights for policymakers and stakeholders.

"The real GSDP of J&K is expected to grow at 7.06 per cent, and the nominal GSDP is expected to grow at 11.19 per cent in 2024-25," the report stated.

"The size of J&K's economy (Nominal Gross State Domestic Product) is estimated to be approximately Rs 2.65 lakh crore, and its real GSDP is estimated to be about Rs 1.45 lakh crore during 2024-25," it said.

The report stated that J&K is estimated to achieve a compound annual growth rate of 4.89 per cent in its real GSDP from 2019-20 to 2024-25, compared to the 4.81 per cent growth rate recorded from 2011-12 to 2019-20.

The report further stated that J&K's per capita annual income (per capita NSDP) at current prices is estimated to reach Rs 1,54,703 in 2024-25 (advance estimates), compared to the national per capita income of Rs 2,00,162 in 2024-25.

As per the report, the per capita income of J&K at current prices is anticipated to grow at 10.6 per cent in 2024-25.

"The comparative analysis of J&K's per capita income with that of northern states from 2019-20 to 2023-24 indicates that J&K's per capita income grew at a compound annual growth rate of 8.3 per cent, which is higher than Punjab (6.22 per cent), Delhi (6.74 per cent), and Himachal Pradesh (6 per cent)," it said.

The report further maintained that J&K is actively contributing to the national GDP (0.8 per cent) in proportion to its population (0.98 per cent).

"The primary, secondary, and tertiary sectors are expected to contribute 20.00 per cent, 18.30 per cent, and 61.70 per cent, respectively, to the Gross State Value Added during 2024-25," it said.

It stated that inflation in J&K increased to 4.5 per cent in 2024 from 4.3 per cent in 2023, showing an overall rise of 0.2 percentage points. In contrast, at the all-India level, inflation decreased to 5 per cent from 5.7 per cent during the same period.

Inflation in J&K hovered between 3.8 per cent and 4.5 per cent from 2019 to 2024, compared to national figures of 3.7 per cent to 5.0 per cent during the same period.

The report further stated that a revenue of Rs 15,737.80 crore was realised in the first nine months of the financial year 2024-25, which is 77 per cent of the Rs 20,333.55 crore revenue realised in 2023-24.

The contribution of non-tax revenue to total revenue increased to 32 per cent in FY25, the report said and pointed out that the share of power tariffs in non-tax revenue grew from 56 per cent to 67 per cent since FY22.

"Tax revenue of Rs 10,624.09 crore was realised in the first nine months of FY25, which is 76 per cent of the Rs 13,903.22 crore revenue realised in FY24, whereas non-tax revenue of Rs 5,113.71 crore was realised in the first nine months of FY25, which is 80 per cent of the Rs 6,430.33 crore revenue realised in FY24," it added.

Among the major revenue contributors, the highest increase of 96 per cent in revenue realisation was witnessed in taxes on vehicles, followed by a 67 per cent increase in power, 36 per cent in GST, 33 per cent in water user charges, and 14 per cent in excise collection, among others, it said.

The revenue expenditure in the first nine months of FY25 stood at Rs 49,828 crore, which is 75 per cent of the Rs 66,621 crore revenue expenditure incurred in FY24.

Meanwhile, capital expenditure in the first nine months of FY25 stood at Rs 11,538 crore, which is 51 per cent of the Rs 22,531 crore capital expenditure incurred in FY24.

The report revealed that J&K has shown significant progress, with the unemployment rate on usual status declining to 6.1 per cent in 2023-24 from 6.7 per cent in 2019-20.

"This improvement is also reflected in the Labour Force Participation Rate (LFPR) and Worker Population Ratio (WPR), which have risen to 64.3 per cent and 60.4 per cent, respectively, in 2023-24, showcasing enhanced employment opportunities and economic activities in J&K," it said.

As many as 40,778 units have been established under various self-employment schemes (SESS), employing about 1.16 lakh young boys and girls, it said.

It stated that 35.28 lakh unorganised workers have been registered on the e-SHRAM portal as of November 2024.

It added that gross non-performing asset has reduced from 5.71 per cent in December 2022 to 4.13 per cent as of March 2024.

The report revealed that total food crop production increased by 7.12 per cent (from 19,515 thousand quintals to 20,904 thousand quintals) over the past year. The region has also progressed towards self-reliance in vegetable production, reaching 520 thousand quintals in 2023-24.

The agriculture sector in J&K is shifting towards high-value crops, organic vegetables, and exotic varieties. Under initiatives like the Holistic Agriculture Development Plan, the government will invest Rs 5,013 crore in 29 projects over five years. This is expected to add Rs 28,000 crore to GSDP, creating 2.88 lakh sustainable jobs, it said.

It added that the plan will also benefit 13 lakh families and provide skills to 2.5 lakh youth through 19,000 new enterprises.