J&K Leads Northern States with 8.81% Per Capita Income Growth Since 2019: Economic Survey

J&K Leads Northern States with 8.81% Per Capita Income Growth Since 2019: Economic Survey

J&K Records Fastest Income Growth in the Region

Jammu and Kashmir has emerged as the fastest-growing region in northern India in terms of per capita income, registering an impressive 8.81% growth rate since 2019, according to the latest Economic Survey. The data highlights a steady rise in average income levels across the Union Territory, reflecting improving economic activity over the past few years.

Outperforming Key Northern States

The survey shows that J&K has outpaced several neighbouring northern states on income growth. Regions such as Punjab, Himachal Pradesh, Delhi, and Chandigarh recorded comparatively slower increases in per capita income during the same period. While Haryana remained close, J&K still maintained a marginal lead in overall growth momentum, signaling stronger economic acceleration.

Income Level Still Below National Average

Despite the rapid growth rate, the Union Territory’s per capita income continues to remain below the national average. Estimates place J&K’s per capita income at around ₹1.6–1.7 lakh for the current fiscal period, whereas the all-India average is significantly higher. This indicates that while growth is strong, income convergence with the national level is still a work in progress.

Services and Tourism Fuel Economic Momentum

The Economic Survey credits the services sector as a major driver behind the income surge. Tourism revival, hospitality expansion, transport services, and retail activity have contributed substantially to economic gains. Increased tourist footfall in Kashmir and Jammu regions has generated employment and boosted local businesses, strengthening household earnings.

Public Investment and Infrastructure Push

Government spending on infrastructure, roads, housing, and connectivity projects has also played a key role in stimulating growth. Improved credit access, development schemes, and administrative reforms have further supported entrepreneurship and small business expansion, helping raise disposable incomes across districts.

Broader Economic Indicators Show Improvement

Apart from income growth, the survey points to positive macroeconomic trends. Economic output has expanded steadily, inflationary pressures have moderated, and unemployment levels have shown gradual improvement. These indicators collectively suggest a stabilising and strengthening regional economy.

Sustaining Growth Remains the Key Challenge

Economists caution that maintaining this growth trajectory will require sustained investment, private sector participation, and job creation. Bridging the gap with the national income average will depend on long-term structural reforms, skill development, and continued focus on tourism and services.

Outlook for the Coming Years

With policy focus on infrastructure, tourism promotion, and investment inflows, Jammu and Kashmir is expected to maintain steady economic momentum. The Economic Survey presents an optimistic outlook, projecting that continued reforms and development initiatives could further accelerate income growth and improve living standards in the Union Territory.