The economic landscape of Jammu and Kashmir has been a topic of both national and international interest, especially since the abrogation of Article 370 in 2019. The Modi-led government has promised a new era of development, focusing on economic integration with the rest of India.
Infrastructure is essential for any economy, and during the Modi administration, Jammu and Kashmir has seen notable advancements in this area. The development of highways, bridges, and tunnels has enhanced road access to remote regions, cutting down travel times and boosting trade opportunities. Initiatives like the Chenani-Nashri Tunnel and the ongoing Zojila Tunnel are designed to ensure year-round access, particularly for the Ladakh region, which is often isolated during the harsh winter months. Under the PM Gram Sadak Yojana (PMGSY), a total of 11,517 km of roads, including 1,858 roads and 84 bridges, have been constructed. Railway projects such as the Udhampur-Srinagar-Baramulla Rail Link (USBRL) are close to completion, promising to connect Kashmir with India’s railway system. The enhancement of infrastructure has not only revitalized the tourism industry but has also created new avenues for local businesses and agricultural exports. The Modi government has worked to ensure national unity while also aligning the region with the Aatma Nirbhar Bharat vision. Jammu and Kashmir is on track to become an educational hub, with institutions like IIT, IIM, IIMC, and AIIMS set to broaden educational prospects for the youth. The central government aims for the youth of J-K to compete with their peers across India and fulfill their ambitions.
Tourism has been the backbone of Kashmir’s economy for many years and the Modi government has particularly focused on the redevelopment of this sector. The promotion of border tourism has also helped to highlight lesser-known areas such as Gurez, Bungas Valley, Lolab, Keran, and Karnah, which have no pollution, are unspoiled and offer adventure tourism. The government has also been organizing festivals and events to showcase the cultural richness of Kashmir to the domestic and international tourists. The tourism in Jammu and Kashmir has registered an impressive annual average growth of 15.13% from all the years 2021 to 2023. The total number of tourists in 2024 wasabout 2,950,000, which is much higher than the number of visitors in 2023, which was 2,710,000 and 2022, which was 2,670,000 . It has also benefited the local economy; the number of tourists has greatly improved business for houseboat owners, artisans, and restaurant owners. The development of adventure sports like skiing in Gulmarg, trekking and water sports have also added to the diversity of the tourism sector to make it a round the year industry.
A significant policy shift under the Modi regime has been the introduction of the New Industrial Development Scheme (NIDS) for Jammu and Kashmir. This scheme offers attractive incentives for investors, aiming to create a robust industrial base in the region. As a result, the UT received investment proposals worth ₹27,000 crores in 2021 alone.Agro-based industries, food processing units, and cold storage facilities have started to flourish, particularly in the apple industry, which is a key contributor to Kashmir’s economy. The horticulture sector, which employs a significant portion of the population, is being modernized with better storage and marketing facilities. New industrial estates are being developed, and the government is encouraging the participation of women entrepreneurs and local youth in these ventures.
Agriculture remains the largest sector in Kashmir’s economy, employing over 65% of the population. The Modi government has introduced several initiatives to improve productivity and reduce dependency on traditional methods. The promotion of high-density apple orchards, organic farming, and the establishment of farmer-producer organizations (FPOs) have provided farmers with access to modern technology and better markets.In addition to apples, saffron production in Pampore has received a boost with the establishment of the National Saffron Mission. Efforts are being made to revive and market traditional crops like walnuts, almonds, and medicinal herbs, which have immense export potential.
Kashmiri handicrafts, known worldwide for their quality and designs, have received renewed attention. The government has launched several initiatives to support artisans and promote Pashmina shawls, Kashmiri carpets, and papier-mâché products in international markets. Online platforms have been developed to connect artisans directly with buyers, cutting out middlemen and increasing their earnings.The GI (Geographical Indication) tagging of products like Kashmiri saffron and Pashmina has further strengthened the brand image of these traditional products. Artisan clusters are being developed, providing training and financial support to artisans to keep their craft alive while ensuring it remains a sustainable livelihood.
Unemployment has been a longstanding issue in Kashmir, especially among youth. The Modi government has responded with a series of skill development and employment generation programs. Initiatives like Himayat and Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) aim to equip young people with the skills needed for modern industries.Programs like Startup India and Stand Up India have encouraged local entrepreneurship, with many young Kashmiris launching successful businesses in sectors ranging from technology to food and fashion. Women entrepreneurs have also made significant strides, establishing ventures in floriculture, handicrafts, and digital services.
Despite the progress, Kashmir’s economic growth faces several challenges. Frequent security concerns , political instability, and bureaucratic delays continue to hamper development efforts. The unemployment rate, though addressed through various schemes, remains higher than the national average. Youth disillusionment and lack of adequate private-sector jobs are issues that need sustained attention.Security concerns also affect investor confidence, limiting the full potential of economic initiatives. Bridging the gap between policy and implementation is crucial for ensuring that the benefits of development reach every citizen in the region.
Under the Modi regime, Kashmir has seen substantial economic growth, with the groundwork being laid for long-term development. The focus on infrastructure, tourism, industrial growth, and digital transformation has opened up new opportunities for the region. While challenges remain, the resilience of the Kashmiri people and continued government efforts can turn the region into a hub of economic activity and prosperity.The coming years will be crucial in determining whether these initiatives can bring lasting change. With the right mix of policies and sustained efforts, Kashmir has the potential to emerge as a shining example of growth and development, fulfilling its promise as the crown jewel of India.

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