Jammu Kashmir Punching Below its Weigh; GDP Share Under 1 Per Cent Despite Population Parity | Kashmir Life

SRINAGAR: Jammu and Kashmir’s contribution to India’s economy remains disproportionately low, with its Gross State Domestic Product (GSDP) accounting for less than one per cent of the national GDP, despite the Union Territory having roughly one per cent of the country’s population, the Comptroller and Auditor General of India has flagged in its latest audit report.

The report, No 2 of 2026, tabled in the Jammu and Kashmir Legislative Assembly, presents a five-year snapshot of the UT’s economic performance, showing that while the size of the economy has steadily expanded, its relative share in the national output has declined.

Jammu and Kashmir’s GSDP grew from Rs 1,67,793 crore in 2020-21 to Rs 2,62,458 crore in 2024-25, reflecting consistent nominal expansion. However, during the same period, India’s GDP rose much faster, from Rs 1,98,54,096 crore to Rs 3,30,68,145 crore, resulting in JK’s share slipping from 0.85 per cent to 0.79 per cent.

The audit noted that even as the economy rebounded after the Covid-19 disruption, the UT’s growth trajectory lagged in relative terms. JK’s GSDP growth rose from 2.25 per cent in 2020-21 to 12.38 per cent in 2021-22, but moderated thereafter to 11.18 per cent by 2024-25. In comparison, India’s GDP growth surged sharply to 18.85 per cent in 2021-22 before stabilising at 9.78 per cent in 2024-25, widening the gap in overall economic scale.

A similar trend was observed in income levels. Per capita income in Jammu and Kashmir increased from Rs 1,01,645 in 2020-21 to Rs 1,54,826 in 2024-25, but remained consistently below the national average, which rose from Rs 1,27,244 to Rs 2,05,324 over the same period. The persistent gap underscores relatively lower income levels in the UT despite overall growth.

The report attributes the declining share partly to structural factors, noting that GSDP depends on multiple variables and requires targeted sectoral interventions to accelerate growth.

Sectoral analysis in the audit shows that the tertiary (services) sector continues to dominate JK’s economy, contributing 61.5 per cent to Gross State Value Added (GSVA) in 2024-25, followed by the primary sector at 20 per cent and the secondary sector at 18.5 per cent.

Within the services sector, public administration emerged as the single largest contributor with a 29.4 per cent share, followed by real estate at 19 per cent, highlighting the heavy role of government spending and services in the economy.

In the secondary sector, construction accounted for the largest share at 42.3 per cent, indicating infrastructure-led activity, while in the primary sector, agriculture overwhelmingly dominated with a 97.9 per cent share, reaffirming its central role in the UT’s economic base.

Growth trends across sectors showed mixed signals. While the secondary sector registered an uptick, growing from 7.35 per cent in 2023-24 to 9.78 per cent in 2024-25, both primary and tertiary sectors saw marginal moderation during the same period.

The Comptroller and Auditor General of India noted that although Jammu and Kashmir’s economy has expanded in absolute terms, the declining share in national GDP and consistently lower per capita income point to underlying structural challenges, warranting focused policy attention to boost productivity and diversify growth drivers.