J&K economy expected to grow at 7.06% in 2024-25: Economic Survey

The report, tabled by Chief Minister and Finance Minister Omar Abdullah, said that unemployment rate declined to 6.1% in 2023-24 from 6.7% in 2019-20.

The economy of Jammu and Kashmir is projected to grow at 7.06% in real terms, while the nominal Gross State Domestic Product (GSDP) is expected to rise by 11.19% 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% in 2023-24 from 6.7% in 2019-20.

Chief Minister Omar Abdullah, who also serves as the Finance Minister, tabled the report in the J&K Assembly on Thursday (March 6, 2025).

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.

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

“The size of J&K’s economy (Nominal Gross State Domestic Product) is estimated to be approximately ₹2.65 lakh crore, and its real GSDP is estimated to be about ₹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% in its real GSDP from 2019-20 to 2024-25, compared to the 4.81% 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 ₹1,54,703 in 2024-25 (advance estimates), compared to the national per capita income of ₹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% 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%, which is higher than Punjab (6.22%), Delhi (6.74%), and Himachal Pradesh (6%),” it said.

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

“The primary, secondary, and tertiary sectors are expected to contribute 20%, 18.3%, and 61.7%, respectively, to the Gross State Value Added during 2024-25,” it said.

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

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

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

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

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

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

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

Meanwhile, capital expenditure in the first nine months of FY25 stood at ₹11,538 crore, which is 51% of the ₹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% in 2023-24 from 6.7% 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% and 60.4%, 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% in December 2022 to 4.13% as of March 2024.

The report revealed that total food crop production increased by 7.12% (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 ₹5,013 crore in 29 projects over five years. This is expected to add ₹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.

Published - March 06, 2025 01:05 pm IST