Jammu and Kashmir (J&K), a region long marred by conflict and instability, has witnessed a significant transformation since the abrogation of Article 370 in August 2019. For decades, the state was caught in the crossfire of terrorism and political turbulence, with Pakistan persistently fueling unrest. The special status granted under Article 370, instead of fostering development, largely benefited a select few political families while leaving the region’s economic potential untapped. However, the past five years indicate a shift towards stability, economic growth, and improved governance.
Following India’s independence in 1947, J&K enjoyed special privileges under Article 370, which granted it autonomy in all matters except defense, foreign affairs, and communications. However, this provision, rather than empowering the people, allowed political dynasties like the Abdullahs and Muftis to dominate governance while fostering an atmosphere of separatism. The forced migration of Kashmiri Pandits in the 1990s further highlighted the region’s deep-seated issues.
The first serious attempt to bring peace to J&K was made by Atal Bihari Vajpayee’s government in the early 2000s. However, a lasting resolution remained elusive. It was only under Prime Minister Narendra Modi’s leadership in 2019 that a decisive step was taken to revoke Article 370 and Article 35A, fully integrating J&K with the Indian Union. While critics warned of widespread unrest, the reality has been quite the opposite—economic revival, improved security, and better governance.
The economic landscape of J&K has seen a remarkable turnaround, as evident from the latest Economic Survey for 2024-25, presented in the state assembly. The report highlights key developments:
- Growth in GSDP: The Gross State Domestic Product (GSDP) is projected to grow at 7.06% in real terms, with the nominal GSDP expected to rise by 11.19% in 2024-25.
- Sectoral Contributions:
- Primary sector (agriculture and allied activities): 20%
- Secondary sector (industry and manufacturing): 18.3%
- Tertiary sector (services, tourism, IT): 61.7%
- Per Capita Income: Expected to reach ₹1,54,703 in 2024-25, reflecting a 10.6% increase, signaling enhanced economic well-being.
- Employment Scenario: Unemployment has declined by 0.6%, with new opportunities emerging in industrial and financial sectors.
J&K has witnessed substantial growth in industrial development, banking, and financial inclusion:
- Credit-Deposit Ratio stands at 62.01%, indicating better access to credit for businesses.
- MSME Growth: 1,984 industrial units with an investment of ₹9,606 crore have been operationalized, creating over 6.37 lakh jobs.
- Handicraft Exports: The region has seen significant growth in handicraft exports, bolstering employment and economic diversification.
The agricultural sector is transforming with a shift toward high-value crops and organic farming. The Holistic Agriculture Development Plan aims to invest ₹5,013 crore over five years, leading to increased agricultural output and employment generation.
J&K’s horticulture sector has also experienced impressive growth due to improved irrigation facilities, better farming techniques, and the introduction of high-quality fruit varieties. This sector now plays a vital role in the state’s economy and job market.
Infrastructure development has been a key focus, with major projects aimed at enhancing connectivity and boosting tourism:
- Highway and Rail Projects: The long-awaited Udhampur-Srinagar-Baramulla rail link is progressing rapidly, and road networks are being expanded.
- Power Sector Growth: The share of power tariffs in non-tax revenue has increased from 56% to 67% since 2022, indicating improvements in energy infrastructure.
- Tourism Revival: The removal of Article 370 has led to an increase in domestic and international tourism, contributing significantly to local businesses and employment.
One of the biggest concerns following the revocation of Article 370 was security. However, contrary to fears of large-scale violence, the region has seen a decline in terrorist activities. Enhanced counterterrorism measures and increased investment in law enforcement have helped restore normalcy. Cross-border infiltration attempts have been curtailed, and local youth are being integrated into mainstream economic activities.
The figures and reforms clearly indicate that J&K is on a steady path of progress. Despite continuing to be a Union Territory, the region is experiencing unprecedented industrial and infrastructural development.
The per capita income, which grew at a CAGR of 8.3%, places J&K in a strong position compared to other northern states. Revenue generation has also improved significantly, with ₹15,737.80 crore collected in just nine months of FY 2024-25—77% of the previous year’s total revenue.
J&K’s journey post-Article 370 abrogation stands as a testament to what political will and strategic policy interventions can achieve. While challenges remain, particularly in maintaining security and ensuring equitable development across all regions, the trajectory suggests that the Union Territory is steadily moving towards a more stable and prosperous future.
Pakistan’s continued attempts to destabilize the region appear increasingly futile, and even global powers like China are strengthening ties with India, recognizing its growing influence. Ultimately, J&K’s progress contributes to India’s overall economic and military strength, reinforcing its position as a global power.
The transformation of Jammu and Kashmir is no longer just a political statement—it is an evolving reality backed by economic data, infrastructural growth, and enhanced stability.
