New Delhi, Aug 6 (IANS) Seven years after the abrogation of Article 370, Jammu and Kashmir is increasingly being viewed through the lens of infrastructure development, connectivity, tourism, investment and economic growth rather than the political and security challenges that dominated discussions for decades, as per a report.
According to the report by India Blooms News Service, the transformation is not the result of a single project or one economic indicator. Instead, it is being driven by the combined impact of improved connectivity, expanding infrastructure, rising investments, tourism growth, hydropower development, and government-backed employment and entrepreneurship initiatives.
The report notes that the integration of the Kashmir Valley with India’s national railway network, the expansion of highways and tunnels, increasing tourist arrivals, fresh investments, and the emergence of new economic opportunities are collectively contributing to a development model that is markedly different from the past.
Economic indicators cited in the report reflect this shift. According to the Jammu and Kashmir Economic Survey 2025-26, the Union Territory’s real Gross State Domestic Product (GSDP) is estimated to grow by 5.82 per cent during 2025-26, while nominal GSDP is projected at around Rs 2.86 lakh crore. Per capita income is estimated at Rs 1,68,243.
The survey identifies the services sector as the largest contributor to gross state value added, accounting for 61.02 per cent. However, the report highlights that the region’s economic growth is no longer dependent on a single sector. Agriculture, horticulture, tourism, manufacturing, construction, and energy are emerging as important contributors to economic activity and employment.
Agriculture and allied activities continue to remain central to livelihoods in Jammu and Kashmir. According to the report, initiatives such as high-density plantations, improved market access and the expansion of Farmer Producer Organisations (FPOs) are helping farmers adopt more organised and commercially viable production practices. The Holistic Agriculture Development Plan has also emerged as a key component of efforts to modernise the rural economy.
The report emphasises that the significance of these developments lies in the emergence of multiple growth drivers. Agriculture, tourism, services, manufacturing and energy are increasingly becoming interconnected components of the Union Territory’s economic framework.
One of the most significant developments highlighted in the report is the expansion of railway connectivity. The completion of the 272-km Udhampur-Srinagar-Baramulla Rail Link (USBRL) in June 2025 connected the Kashmir Valley directly with the national railway network for the first time.
The project includes major engineering achievements such as the Chenab Rail Bridge and the Anji Bridge, both of which have become symbols of the region’s growing connectivity. The introduction of Vande Bharat train services has further strengthened passenger movement between the Valley and the rest of the country.
The report notes that the railway network continued to expand its role in 2026. In April, the Jammu-Srinagar Vande Bharat service was extended to Jammu Tawi and its capacity was increased from eight to 20 coaches. Regular operations began on May 2. According to data cited in the report, the service carried 44,727 passengers during its first ten days of operation, including tourists, pilgrims, traders and local residents.
Beyond passenger transportation, the railway network is also facilitating the movement of goods. The report points out that Kashmir’s apple produce is now reaching markets across the country more efficiently, while essential commodities such as food grains, fertilisers, cement, salt, and milk are being transported into the Valley with greater ease. As a result, the railway is increasingly serving as a critical link connecting Jammu and Kashmir to national markets.
The report also highlights the importance of road and tunnel infrastructure in improving all-weather connectivity. Major road projects, including the Jammu Semi Ring Road and Srinagar Semi Ring Road, continue to make progress and are expected to improve mobility across the Union Territory.
A major milestone was achieved in June 2026 when the main tunnel of the Zojila Tunnel project recorded a breakthrough. Once completed, the tunnel will provide year-round connectivity between Jammu and Kashmir and Ladakh. According to the report, the project is expected to strengthen tourism, trade and regional mobility while reducing disruptions caused by adverse weather conditions.
Tourism has emerged as one of the clearest indicators of the changing economic landscape. Government data cited in the report show that Jammu and Kashmir recorded more than 2.3 crore tourist arrivals in 2024, the highest number in its history.
The report attributes this growth to improved rail, road and air connectivity, as well as the development of tourism destinations beyond traditional centres. Increased tourist spending has created opportunities across hospitality, transport, food services, handicrafts and local businesses, generating economic benefits across a wide range of sectors.
To support rising passenger traffic, aviation infrastructure is also being expanded. In February 2026, the Union Cabinet approved the construction of a new Civil Enclave at Srinagar International Airport at an estimated cost of Rs 1,677 crore. The proposed terminal, spread across 71,500 square metres, is expected to handle up to 2,900 passengers during peak hours and around 10 million passengers annually.
Investment inflows are another major indicator of the changing economic environment. According to figures cited in the report, Jammu and Kashmir attracted approximately Rs 18,000 crore in investments between 2016-17 and 2025-26, compared to around Rs 8,000 crore during the preceding decades.
The report notes that industrial policies, infrastructure expansion and reforms aimed at improving the business environment have contributed to this growth. The Economic Survey 2025-26 also records the operationalisation of new industrial units and notes that Jammu and Kashmir achieved a “Top Achiever” ranking in the national Ease of Doing Business assessment.
Employment generation and entrepreneurship have also received considerable attention. Government data show that more than 41,000 government jobs were created between 2019 and May 2026. In addition, over 9.81 lakh people benefited from self-employment opportunities under various government-supported schemes during the previous four years.
The report highlights Mission YUVA as one of the government’s flagship initiatives aimed at enterprise creation and employment generation. The programme seeks to establish 1.37 lakh enterprises and generate approximately 4.25 lakh jobs over five years through skill development, entrepreneurship support and employment-focused interventions.
Another area witnessing significant growth is the power sector. The report notes that Jammu and Kashmir possesses substantial hydropower potential, making energy development an important component of the region’s economic strategy. The 2026-27 Budget estimates Rs 7,100 crore in non-tax revenue from the power sector, accounting for nearly 64 per cent of the government’s own non-tax revenue.
The J&K Hydro Power Policy 2025 is expected to provide a framework for expanding the sector and attracting fresh investment. According to the report, a stronger hydropower ecosystem can support industrial growth, improve energy security and generate additional revenue for the government.
The report further points out that the development push is reflected in the Union Territory’s budget priorities. The 2026-27 Budget projects GSDP at Rs 3,15,822 crore at current prices, representing a 9.5 per cent increase over the revised estimates for 2025-26. Capital expenditure has been budgeted at Rs 25,236 crore, underscoring the government’s focus on infrastructure creation.
At the same time, the report notes that public spending extends beyond physical infrastructure. Allocations have been made for education, crop insurance, upgraded Anganwadi centres, welfare programmes and assistance for vulnerable groups, reflecting an effort to balance infrastructure development with social sector growth.
According to the report, seven years after the abrogation of Article 370, the emerging story of Jammu and Kashmir is increasingly one of connectivity, economic integration and development. Railways are linking the Valley with national markets, roads and tunnels are improving year-round access, tourism has reached record levels, investment is rising, and hydropower is gaining greater importance. Together, these developments are contributing to the gradual integration of Jammu and Kashmir into India’s broader economic network.
–IANS
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