Jammu & Kashmir Economy: Comparison of 2024–25 and 2025–26

 

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Jammu & Kashmir Economy: Comparison of 2024–25 and 2025–26

By Home Academy

Economic Growth (Real GSDP)

In 2024–25, Jammu & Kashmir recorded a higher real GSDP growth of about 7.06%, reflecting strong post-pandemic recovery and tourism momentum.
In 2025–26, the growth rate is estimated at 5.82%, showing moderation but still remaining above several northern states.

Size of the Economy (GSDP)

For 2024–25, the nominal GSDP stood at approximately ₹2.65 lakh crore, while the real GSDP was around ₹1.45 lakh crore.
In 2025–26, the economy expanded further with nominal GSDP rising to ₹2.86 lakh crore and real GSDP to ₹1.50 lakh crore, indicating absolute economic expansion.

Contribution to India’s GDP

In 2024–25, J&K’s contribution to India’s GDP remained close to 0.7–0.8%.
In 2025–26, the contribution is clearly estimated at around 0.8%, proportionate to its population share.

Per Capita Income

The per capita income in 2024–25 was about ₹1,54,703.
For 2025–26, it increased significantly to ₹1,68,243, reflecting improved income levels and productivity.

Sectoral Structure

In 2024–25, the economy was dominated by the tertiary (services) sector, followed by primary and secondary sectors.
In 2025–26, this structure continued with services contributing about 61.02%, primary sector 20.45%, and secondary sector 18.52%, showing structural stability.

Tourism Performance

In 2024, tourist arrivals touched a record around 2.36 crore, giving a strong boost to the economy.
In 2025, tourist visits remained high at about 1.78 crore, sustaining employment and service-sector growth.

Inflation Trend

During 2024–25, inflation in J&K hovered around 4.5%.
In 2025–26, inflation eased to nearly 3.8%, indicating better price stability.

Comparative Performance

Between 2019–20 and 2024–25, J&K outperformed states like Delhi, Himachal Pradesh, and Punjab in growth terms.
This trend continued into 2025–26, despite a slightly lower growth rate.

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Overall Assessment

The year 2024–25 marked faster growth, while 2025–26 reflects stronger economic size, higher per capita income, and improved stability. Jammu & Kashmir’s economy is moving from recovery to consolidation, with tourism and services acting as long-term growth engines.

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 MCQ questions on Jammu & Kashmir Economy: 2024–25 vs 2025–26, strictly arranged for JKSSB, JKPSC exam by home academy

1. Which of the following correctly describes the change in Jammu and Kashmir’s real GSDP growth rate from 2024–25 to 2025–26
   A. It increased from 5.82% to 7.06%
   B. It remained constant at around 6%
   C. It declined from about 7.06% to 5.82%
   D. It declined below 4%
   Correct Answer: C

2. The nominal GSDP of Jammu and Kashmir increased from approximately ₹2.65 lakh crore in 2024–25 to about ______ in 2025–26
   A. ₹2.72 lakh crore
   B. ₹2.80 lakh crore
   C. ₹2.86 lakh crore
   D. ₹3.10 lakh crore
   Correct Answer: C

3. The real GSDP of Jammu and Kashmir in 2025–26 is estimated at nearly
   A. ₹1.30 lakh crore
   B. ₹1.40 lakh crore
   C. ₹1.45 lakh crore
   D. ₹1.50 lakh crore
   Correct Answer: D

4. Jammu and Kashmir’s contribution to India’s national GDP in 2025–26 is approximately
   A. 0.5%
   B. 0.6%
   C. 0.8%
   D. 1.2%
   Correct Answer: C

5. The per capita income of Jammu and Kashmir rose from about ₹1,54,703 in 2024–25 to nearly ______ in 2025–26
   A. ₹1,60,000
   B. ₹1,65,000
   C. ₹1,68,243
   D. ₹1,72,500
   Correct Answer: C

6. Which sector remained the largest contributor to Jammu and Kashmir’s economy in both 2024–25 and 2025–26
   A. Primary sector
   B. Secondary sector
   C. Tertiary sector
   D. Mining sector
   Correct Answer: C

7. The contribution of the tertiary sector to Jammu and Kashmir’s GSDP in 2025–26 is approximately
   A. 48%
   B. 55%
   C. 61%
   D. 68%
   Correct Answer: C

8. Tourist arrivals in Jammu and Kashmir declined from around 2.36 crore in 2024 to about ______ in 2025
   A. 1.20 crore
   B. 1.50 crore
   C. 1.78 crore
   D. 2.10 crore
   Correct Answer: C

9. The easing of inflation from about 4.5% in 2024–25 to nearly 3.8% in 2025–26 indicates
   A. Economic slowdown
   B. Improved price stability
   C. Rising unemployment
   D. Decline in services sector
   Correct Answer: B

10. Which of the following best explains why Jammu and Kashmir’s economic growth in 2025–26 remained strong despite a lower growth rate than 2024–25
    A. Decline in population growth
    B. Expansion in economic size and higher per capita income
    C. Reduction in agricultural activity
    D. Lower tourism inflow
    Correct Answer: B

11. The increase in real GSDP from 2024–25 to 2025–26 mainly reflects
    A. Higher inflation
    B. Better productivity and sectoral stability
    C. Decline in services sector
    D. Reduced government spending
    Correct Answer: B

12. During the period 2019–20 to 2025–26, Jammu and Kashmir’s growth performance remained better than that of
    A. Maharashtra and Gujarat
    B. Tamil Nadu and Karnataka
    C. Delhi, Himachal Pradesh, and Punjab
    D. West Bengal and Odisha
    Correct Answer: C