J&K economy to grow 5.82 percent in real terms in 2025-26

STC NEWS DESK
SRINAGAR, FEBRUARY 05 (STC): Jammu and Kashmir’s economy is estimated to grow by 5.82 per cent in real terms during 2025-26, while nominal GSDP is projected to expand by 8.89 per cent, according to official estimates.
The size of the Union Territory’s economy has been placed at Rs 2.86 lakh crore in nominal terms and Rs 1.50 lakh crore in real terms for 2025-26. During the period 2019-20 to 2024-25, J&K recorded a compound annual growth rate (CAGR) of 4.47 per cent in real GSDP.
Per capita income (NSDP) in nominal terms is estimated at Rs 1,68,243 in 2025-26, lower than the national average of Rs 2,19,575. However, J&K’s per capita income grew at a CAGR of 8.81 per cent between 2019-20 and 2024-25, higher than several northern States and UTs including Himachal Pradesh, Delhi, Punjab, Chandigarh and Haryana.
Jammu and Kashmir contributes about 0.8 per cent to the national GDP, broadly in line with its population share. The tertiary sector continues to dominate the economy, contributing 61.02 per cent to GSVA in 2025-26, followed by the primary sector (20.45 per cent) and secondary sector (18.52 per cent).
Inflation in the Union Territory declined from 4.5 per cent in 2024 to 3.8 per cent in 2025, a drop of 0.7 percentage points.
During the current financial year 2025-26 (up to November 2025), revenue realisation stood at Rs 13,521 crore, about 64 per cent of the Rs 21,121 crore realised in FY 2024-25.
Tax revenue of Rs 9,136 crore and non-tax revenue of Rs 4,386 crore were realised in the first eight months of FY26.
Non-tax revenue’s share in own resources increased from 29 per cent in FY22 to 33 per cent in FY25, with power tariff accounting for 71 per cent of non-tax revenue in FY25. Among major revenue heads, taxes on power rose by 80.71 per cent between FY22 and FY25, followed by growth in GST and excise collections.
Revenue expenditure in the first eight months of FY26 was Rs 45,157 crore, while capital expenditure stood at Rs 7,933 crore.
The unemployment rate on usual status declined from 6.7 per cent in 2019-20 to 6.1 per cent in 2023-24. Labour Force Participation Rate and Worker Population Ratio increased to 64.3 per cent and 60.4 per cent, respectively.
Under employment and credit-linked schemes, over 10,800 units were established in 2024-25, providing self-employment to around 0.85 lakh youth. Banking infrastructure expanded to 14,007 points by September 2025, with the credit-deposit ratio at 62.93 per cent and gross NPAs declining to 3.26 per cent.
In agriculture, food grain production increased by 1.33 per cent over the last year, while vegetable production reached 496 thousand quintals in 2024-25, reflecting a shift towards high-value and organic crops.
(Straight Talk Communications I Inputs from KNS)