Reimagining Kashmir After Article 370: A Comprehensive Outlook of its Development Progress

On August 5, 2019, a significant constitutional change marked a new chapter in Indian history with the abrogation of Article 370 and Article 35A. This was not just a legal step, but the dawn of a new era in Jammu and Kashmir, symbolising integration, development, and an aspiration for a more inclusive nation. 

Illustration by The Geostrata

This move highlighted a recalibration, one rooted in extending the government’s reach, national schemes, and economic growth in a region known for its beauty. Over the years, the region has begun to witness a gradual transformation.

All year-round motorable roads are now being constructed across the snow-clad valleys, railway lines are reaching Srinagar, and the famous Dal Lake is alive with tourists in large numbers. The winds of Kashmir now carry with them development, increasing economic activities, infrastructural growth, and a greater social inclusion.   

ECONOMIC REVITALISATION

Jammu and Kashmir is witnessing a steady growth driven by growth in GSDP, rising per capita income, and targeted sectoral development.

For the financial year 2025-26, the Union Territory has allotted  ₹41,000.07 crore, and  ₹9325.73 crore has been allotted exclusively for the Jammu and Kashmir Police. 

According to the Economic Survey Report for the year 2024-25, the nominal Gross State Domestic Product of Jammu and Kashmir is expected to rise by 11.19% in 2024-25. The nominal GSDP is projected to reach ₹2.65 lakh crore, while the real GSDP is projected at ₹1.45 lakh crore, highlighting a compound annual growth rate of 4.89% from 2011-12 to 2019-2020. 

The per-capita income is also estimated to rise by 10.6% to ₹1,54,703, signalling an improved economic well-being of the residents. Various sectors have also contributed significantly, with the primary sector 20%, the secondary sector 18.3% and the tertiary sector contributing 61.7% to the state’s GDP.  

The Jammu and Kashmir Government has received over 8500 applications with investment proposals worth ₹1.69 lakh crore and employment proposals for over 6 lakh jobs for the Union Territory to attract investment and generate employment. 

Furthermore, 213 non-locals and 1,751 locals have been allotted land for industrial purposes under the Industrial Policy 2016-26 and the Industrial Land Allotment Policy 2021-30 for the economic growth of Jammu and Kashmir through both internal and external investments.

On January 28, 2025, during the ‘Jammu Kashmir Konnect’ program, the Department of Promotion of Industry and Internal Trade and the Jammu and Kashmir Entrepreneurship Development Institute signed a Memorandum of Understanding to enhance the region’s startup ecosystem through mentorship programs, knowledge exchange, and infrastructure support. 

The Director of the Jammu and Kashmir Entrepreneurship Development Institute underscored the success of the Jammu and Kashmir Startup Policy, with 988 startups registered and 601 Entrepreneurship Awareness Programs successfully conducted across 20 districts. The event brought together key incubators from IIT-Jammu, IIM-Jammu, and NIT-Srinagar, marking a pivotal step in the Union Territory’s entrepreneurial growth.  

Moreover, the horticulture sector has had an impressive growth in the last three years. According to the Economic Survey Report, the area under key horticulture crops expanded by 10,000 hectares, and production rose by 4.13 lakh metric tonnes. Further, the Holistic Agriculture Development Plan aims to increase fruit production to almost 50,000 hectares by 2047.

The ongoing economic revitalisation marks a new era of development and opportunity driven by the startup ecosystem, industrial investment, and long-term inclusive growth across the region. 

REVIVAL OF TOURISM

Tourism serves as a major livelihood for the people of Kashmir, a sector where economy, commerce, and nature converge. Kashmir is often called the “Paradise on Earth”, enchanting travellers as a living postcard of beauty and tranquility. As connectivity increases and stability ensues, tourism now redefines itself as a major source of employment generation and economic growth in the region. 

According to the Economic Survey Report for the year 2024-25, tourism contributed to 7% of the Union Territory’s GSDP, valued at  ₹18,550 crore in nominal terms and  ₹10,150 crore in real terms.

The Jammu and Kashmir Government has allocated ₹390.2 crore as capital expenditure for the tourism sector for the financial year 2026. The non-tax revenue from tourism was estimated at Rs 50 crore for the financial year 2025, with an expected rise to  ₹100 crore in the financial year 2026.  

The administration’s comprehensive policy, rolled out in 2020, aims to generate approximately 50,000 jobs per year and attract  ₹2000 crore investment per year. In the year 2024, a record of 2.36 crore tourists visited the Union Territory, as per the data of the Jammu and Kashmir tourism department. 

Further, air connectivity has also increased with Indian Airlines' scheduled operation of 4,300 flights to Srinagar, according to the data from aviation analytics company Cirium between April and June of 2025, with an increase of over 12% compared to  2024 and 21% compared to 2023. 

The economic survey report also accounts for 34,98,702 tourists visiting Kashmir in 2024, including 5.12 lakh Amarnath yatris. The tourist footfall in 2024 was approximately five times higher than in 2021which recorded 6,65,777 visitors. 

This surge of tourism is also due to various international and national events alongside digital promotion. The 3rd Tourism Working Meeting of G20 contributes to putting the region in the spotlight. Further events like the inaugural F4 car show in Srinagar also showcase the region’s increasing appeal. 

With its famous Gondola, Gulmarg remains a crowd-puller. In 2024, the ropeway ride drew over 7.68 lakh visitors, generating Rs 103 crore in revenue. The ski resort has successfully organised four editions of the Khelo India Winter Games.

The Indira Gandhi Memorial Tulip Garden saw more than 6,71,926 visitors in just 20 days of its opening on March 26, 2025, underscoring the highest footfall ever.   

Besides, Srinagar also hosted its first-ever international marathon in October 2024, with 2005 participants, including 499 runners from Indian states and 59 international athletes, generating ₹39.26 lakh in registration fees. 

Image Credits: Rightful Owner

Beyond numbers, tourism is the key driver for the economic development of the Union Territory. The tourism sector, rooted in the region’s unparalleled beauty, has led to job creation in the hospitality, transport, as well as other allied sectors.  

CONNECTIVITY AND INFRASTRUCTURE

The infrastructure and connectivity sector of Jammu and Kashmir has also witnessed growth. A total of 47 highway projects stretching up to 810 km, amounting to ₹41735 crore, are currently under construction in the valley, as per the official statistics of the Union Ministry of Road Transport and Highways. The valley remains one of the main areas to benefit from the government’s highway expansion initiative. 

At 40-60 km intervals, the government has also mapped out the establishment of wayside amenities with fuel stations, EV charging stations, rest areas, and food courts. Of the 700-plus scheduled WSAs, 393 have already been granted, with 94 functional.

Prime Minister Narendra Modi in February 2024 declared ₹32000 crores development initiatives for the education, aviation, railways, and road sectors for the Union Territory.  The inauguration of railway and road projects, along with a 40,000 sq m airport terminal, proves the government’s intention to develop Jammu and Kashmir. The launch of the Banihal–Sangaldan railway line and the electrification of the 186 km Baramulla–Sangaldan railway track symbolise the progress in the region. 

Further, the Prime Minister in June 2025, inaugurated the world’s tallest single-arch railway bridge, built over the Chenab River linking the Kashmir valley with the rest of the nation for the first time. It is a segment of the 272 km all-weather railway line that passes through Jammu, finally reaching up to the Kashmir valley. 

Further important investments are being made to boost power and infrastructure in the region, with a proposed equity contribution of  ₹130 crore for the Kiru Hydro Electric Project, Rs 476.44 crore for the Ratle Hydro Electric Project, and  ₹171.23 crore for the Kwar Hydro Electric Project. 

This infrastructural push in Jammu and Kashmir is aimed towards bridging the decades-old accessibility and connectivity gaps, unlocking the untapped potential of the valley, and integrating it with the rest of the nation. 

EDUCATION AND HEALTHCARE

As a significant boost to education in the region, the campus of the Indian Institute of Management in Jammu has also been inaugurated along with projects worth ₹13,375 crore for the higher education sector. This includes campuses of three Indian Institutes of Technology, 13 Navodaya schools, and 20 Kendriya Vidyalayas. 

In order to bolster the healthcare sector of Jammu and Kashmir, the Union Government approved the development of two AIIMS campuses in 2019. AIIMS Jammu, commissioned in August 2024, was established under the Pradhan Mantri Swasthya Suraksha Yojana. In its initial year, AIIMS Jammu treated over 2.6 lakh OPD patients and performed more than 1800 surgeries, giving a major boost to the region’s healthcare infrastructure.

Another AIIMS hospital at Awantipora in South Kashmir is expected to be functional by November 2025.

This growth in the healthcare infrastructure of the region will reduce patient outflow to other states and make advanced healthcare available within the Kashmir Valley. 

Jammu and Kashmir has gradually transitioned from a period of isolation to a period of inclusion with sustained economic growth, infrastructure development, and renewed public confidence. The increasing security framework, better governance, and targeted welfare policies have led to stability in the region.

With substantial growth in the tourism sector, a boost in the healthcare and educational facilities, the region has witnessed major development. From the quiet waters of Dal Lake to the heights of the Chenab Bridge, Jammu and Kashmir stands at the threshold of new beginnings where the present holds more aspirations than the past and the future echoes promises of inclusion, welfare, and development.  

---

BY ANUSHKA DHAR

TEAM GEOSTRATA

info@thegeostrata.com