Survey flags post-pandemic recovery, higher GST collections, sectoral diversification

Sajid Raina

Srinagar, Feb 05 : Jammu and Kashmir’s economy is projected to grow by 5.82 per cent in real terms in 2025–26, reflecting a steady post-pandemic recovery and improved fiscal management, according to theEconomic Survey Report 2025–26 tabled in the Legislative Assembly on Thursday.

As per the report, accessed by the news agency—Kashmir News Observer (KNO), the Union Territory’s real Gross State Domestic Product (GSDP) is estimated to expand by 5.82 per cent during 2025–26.

It says, the nominal GSDP is expected to grow by 8.89 per cent, taking the overall size of the economy to nearly Rs: 2.86 lakh crore.

Between 2019–20 and 2024–25, Jammu and Kashmir recorded a compound annual growth rate (CAGR) of 4.47 per cent in real terms, underscoring a sustained recovery following the pandemic-induced slowdown.

“Per capita income has also shown consistent improvement. Estimated at Rs: 1,68,243 in 2025–26, it has maintained an upward trend over the past five years, growing faster than in several northern states and Union Territories,” the report said.

The tertiary sector accounted for the largest share of Gross State Value Added (GSVA) at 61.02 per cent, followed by the primary sector at 20.45 per cent and the secondary sector at 18.52 per cent.

While agriculture and allied activities continue to remain a key source of employment and livelihood, growth in industry, infrastructure, and services has supported economic diversification compared to previous years, the survey said.

On the fiscal front, the UT reported improved revenue mobilisation and expenditure management. Revenue receipts of Rs: 13,521 crore were realised up to November 2025, driven by higher collections from GST, excise and non-tax sources such as power revenues.

“Capital expenditure remained focused on infrastructure creation, asset development and completion of ongoing projects,” the survey said. It also highlighted progress in governance and financial transparency through the increased use of digital platforms such as BEAMS and GeM, which have streamlined public financial management in recent years.

Sector-wise, the survey pointed to gains in agriculture and horticulture, driven by higher foodgrain and fruit production, expansion of high-density plantations, and increased participation of farmers in Farmer Producer Organisations (FPOs).

“Market access was strengthened through e-NAM integration. Industrial development was supported by policy reforms, new investment proposals and operationalisation of new units, with Jammu and Kashmir achieving a ‘Top Achiever’ ranking nationally in Ease of Doing Business,” it added.—(KNO)