Economy of Jammu & Kashmir – Complete Notes for JKSSB
🗂️ 1. Introduction to J&K Economy
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Jammu and Kashmir’s economy is primarily agrarian, with agriculture, horticulture, handicrafts, and tourism being key sectors.
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Now recognized as a Union Territory (from Oct 31, 2019) after J&K Reorganisation Act 2019.
🏞️ 2. Major Sectors of Economy
🌾 A. Agriculture
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Largest employment sector (~70% population dependent).
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Key crops:
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Rice, Maize, Wheat, Barley – major food grains.
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Saffron – Pulwama, Budgam, Kishtwar.
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Oilseeds, Pulses, Vegetables also important.
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🍎 B. Horticulture
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Backbone of rural economy.
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J&K is India's largest producer of apples.
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Other fruits: Pears, cherries, walnuts, almonds, apricots.
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Export-oriented with high income generation.
🧶 C. Handicrafts
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Provides large-scale employment with low investment.
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World-famous products:
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Pashmina shawls
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Kani shawls
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Paper mache
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Carpet weaving
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Wood carving
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Sozni embroidery
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🏔️ D. Tourism
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“Paradise on Earth”; major foreign exchange earner.
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Famous spots: Gulmarg, Pahalgam, Sonamarg, Dal Lake, Vaishno Devi.
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Affected by political instability and terrorism.
🔋 3. Power Sector
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Huge hydroelectric potential (estimated 20,000 MW).
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Major hydropower projects: Baglihar, Salal, Dul Hasti, Uri.
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Electricity production is not self-sufficient; power is also imported.
🛣️ 4. Infrastructure
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Road connectivity improved via PMGSY, Bharat Mala.
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Railway: Udhampur–Banihal–Baramulla line under progress.
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Air connectivity: Srinagar, Jammu, Leh airports.
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Chenani-Nashri Tunnel and Zojila Tunnel improved accessibility.
🏭 5. Industries
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Not highly industrialized.
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Small-scale industries (SSIs) and cottage industries dominate.
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Government support via Industrial Development Schemes (like NEIDS, 2021).
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Barriers: Power shortage, land issues, transportation.
📦 6. Trade and Commerce
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Trade with rest of India improved post abrogation of Article 370.
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Cross LoC trade (Barter system) between Poonch-Rawalakot & Uri-Muzaffarabad (now suspended).
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Handicrafts and dry fruits are major exports.
🏛️ 7. Government Initiatives
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Industrial Policy 2021: ₹28,400 crore package.
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J&K Infrastructure Development Finance Corporation (JKIDFC): For stalled projects.
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Back to Village Program: Rural development and employment.
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Mission Youth: For youth skill development.
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One District One Product (ODOP) scheme.
💰 8. Banking and Financial Sector
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J&K Bank: Leading financial institution.
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Nationalized banks, Grameen Banks, and Co-operative banks also function.
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Digital banking and financial inclusion improving.
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Issues: Low financial literacy, difficult terrain.
📊 9. Employment and Unemployment
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High unemployment rate, especially among educated youth.
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Seasonal employment in agriculture and tourism.
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Government jobs highly preferred.
🌐 10. Recent Economic Developments
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Post-370 abrogation:
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Central laws and schemes applicable (like GST, IBC).
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Investment Summit planned but delayed.
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G20 Tourism Working Group meeting in Srinagar (May 2023) – boosted international visibility.
📌 Important Facts for MCQs
| Topic | Key Facts |
|---|---|
| Horticulture | 8 lakh families dependent |
| Apple Production | 75% of India’s apple production |
| Saffron | GI Tag granted to Kashmir Saffron (2020) |
| Handicrafts Export | Over ₹1000 crore/year |
| Hydropower Capacity | 20,000 MW (potential), 3500 MW (utilized) |
| Industrial Policy 2021 | ₹28,400 crore |
| Unemployment Rate | ~22% (among highest in India) |
📚 Practice MCQs – J&K Economy
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Which district is famous for saffron cultivation in J&K?
A) Baramulla
B) Pulwama ✅
C) Kupwara
D) Poonch -
Which is the largest employment sector in Jammu & Kashmir?
A) Industry
B) Tourism
C) Agriculture ✅
D) Handicrafts -
Which fruit is Jammu and Kashmir the largest producer of in India?
A) Mango
B) Apple ✅
C) Banana
D) Guava -
What is the name of the tunnel connecting Jammu with Kashmir to reduce distance?
A) Atal Tunnel
B) Banihal Tunnel
C) Zojila Tunnel
D) Chenani-Nashri Tunnel ✅ -
What percentage of India’s total hydropower potential lies in J&K?
A) 5%
B) 10% ✅
C) 20%
D) 1%