Economy of Jammu & Kashmir experiencing dynamic revitalization
Jammu & Kashmir (J&K) is witnessing a significant economic transformation following the COVID-19 pandemic, thanks to robust government-led initiatives, infrastructure development, and enhanced security measures.
Tourism, a key sector in J&K, has shown remarkable resilience and recovery, with over 95 lakh domestic tourists recorded in the first half of 2025. This surge is attributed to improved amenities, infrastructure investments under programs like the Swadesh Darshan scheme, and enhanced security measures that have increased traveler confidence.
The central government's leadership since the removal of Article 370 has been instrumental in this transformation. Targeted schemes and heavy investments in infrastructure to boost economic activities, particularly tourism, have been a cornerstone of this effort [1][4].
In addition to tourism, the business sector in J&K is also experiencing revival. Expenditure restriction guidelines focused on managing the economic impact of the pandemic and facilitating recovery are in place to support this growth [3].
The economic transformation in J&K is also marked by the improvement of logistics. The Jammu and Srinagar Ring Roads have significantly reduced congestion, and schemes like PMGSY are connecting rural areas, boosting trade [5].
Srinagar and Jammu Airports have also seen improvements in passenger handling, making travel more efficient [6].
The Union Territory is emerging as a strategic economic hub in northern India, thanks to its robust post-COVID growth and strong policy frameworks. The implementation of the National Education Policy 2020 (NEP 2020) is driving curriculum modernization and skill-based education, while initiatives like PMEGP, REGP, and Hausla, Tejaswini, and Mumkin are empowering women and youth through skill development, incubation, and market access [4][7].
Moreover, the Mission Youth programme integrates mentoring, training, and employment support for the youth of J&K, ensuring a skilled and employable workforce for the future [8].
In summary, the combination of strong government leadership, significant infrastructure investment, improved security, and focused revival policies forms the triad of key factors driving economic transformation in Jammu & Kashmir post-COVID-19. The Union Territory is well on its way to becoming a major economic powerhouse in India.
[1] Government of India, Ministry of Tourism
[2] The Indian Express
[3] Business Standard
[4] The Economic Times
[5] The Times of India
[6] The Hindu
[7] Jammu and Kashmir Bank
[8] Mission Youth
The business sector, like tourism, is thriving in J&K, benefiting from economic recovery guidelines and central government investments aimed at revitalizing economic activities [3]. This renewal is part of the broader economic transformation in J&K, which is also marked by improvements in finance, such as the implementation of the National Education Policy 2020 and job-oriented schemes like PMEGP, REGP, and Hausla, Tejaswini, and Mumkin [4][7], designed to empower women and youth.
