Srinagar, Feb 5: Jammu & Kashmir has recorded a per capita income growth of 8.81% between 2019-20 and 2024-25, surpassing several northern states and Union Territories including Punjab, Delhi, Himachal Pradesh, Chandigarh, and Haryana, official data shows.
The Union Territory’s compound annual growth rate (CAGR) of 8.81% in per capita income during this period is higher than Himachal Pradesh’s 6.54%, Delhi’s 6.74%, Punjab’s 7.46%, Chandigarh’s 8.21%, and slightly above Haryana’s 8.72%. The size of J&K’s economy is estimated at around Rs 2.86 lakh crore (nominal) and Rs 1.50 lakh crore (real) for the current fiscal year. The real GSDP grew at a CAGR of 4.47% during this period.
J&K contributes roughly 0.8% to India’s GDP, matching its population share. Revenue collection trends are positive, with total revenue of Rs 13,521 crore realised by November 2025-26, about 64% of the previous year’s Rs 21,121 crore, indicating the Union Territory is on track to meet or exceed last year’s collection.
Tax revenue has been robust, with Rs 9,136 crore collected in the first eight months of FY26, while non-tax revenue stood at Rs 4,386 crore. Taxes on power surged 80.71% from Rs 2,716 crore in FY21-22 to Rs 4,908 crore in FY24-25. GST and excise collections also grew by 34.28% and 27.42%, respectively.
The tertiary sector leads the economy, contributing 61.02% to GSVA, while primary and secondary sectors contribute 20.45% and 18.52%, respectively. Inflation moderated from 4.5% in 2024 to 3.8% in 2025, supporting purchasing power. Unemployment fell from 6.7% in 2019-20 to 6.1% in 2023-24, with Labour Force Participation Rate (LFPR) and Worker Population Ratio (WPR) rising to 64.3% and 60.4%.
Employment generation initiatives also made an impact. In 2024-25, 10,814 units were established under PMEGP/JKREGP, providing self-employment to around 85,000 youths. As of November 2025, 36.08 lakh unorganised workers are registered on e-SHRAM. In FY26, Rs 389.56 crore credit was disbursed to 10,139 beneficiaries under major employment schemes.
Banking infrastructure has expanded, with 14,007 banking points as of September 2025, covering an average of 5,535 people per branch. The Credit-Deposit Ratio stands at 62.93%, with priority sector credit highest in agriculture (48%) and MSMEs (23%). Gross Non-Performing Assets declined from 3.9% to 3.26%.
J&K has 23.10 lakh Jan Dhan accounts, with 65% holding RuPay debit cards, and 11.40 lakh active Kisan Credit Cards, with loans totaling Rs 10,421.45 crore.
Economists attribute J&K’s strong per capita income growth to better governance, improved revenue mobilisation, focused employment generation, and expanded banking and financial services. (Agencies)
