How Jammu & Kashmir has changed in seven years after Article 370

As the abrogation of Article 370 completes seven years the progress of Jammu and Kashmir is in stark contrast with the economic hardships in Pakistan occupied Jammu and Kashmir that has fueled the current crisis in that region.

Over the past 7 years, J & K has recorded steady economic expansion, marked by rising Gross State Domestic Product (GSDP), higher per capita income, and increased developmental spending. Growth is propelled by major investments in tourism, infrastructure connectivity, and horticulture, alongside rising per capita income and targeted public welfare spending.

Jammu and Kashmir has also achieved the status of a fully literate Union Territory under the Government of India’s ULLAS (Understanding Lifelong Learning for All in Society) scheme, with a reported literacy success rate of 99.09 percent.


Jammu and Kashmir is becoming a hub for startups.

"The startup ecosystem expanded from 69 startups in 2020 to 1,255 startups by Dec 2025, including 434 women-led startups, across agri-allied, IT, services, and manufacturing sectors," according to the J&K Economic Survey 2025-26.

J&K's startup ecosystem is also supported by the ambitious Jammu & Kashmir Startup Policy 2024-27, which aims to facilitate funding by means of venture capital funds, loan guarantee programs, seed funding, patent-related assistance and assistance for mentorship.

J&K received investment worth Rs 5,260 crore in nine months of FY 2025-26. "New Central Sector Scheme has attracted proposed investment of Rs 14,292 crore, expecting to generate employment opportunities for more than 50,000 youth," the Economic Survey said.

Tourism continues to contribute majorly to J & K's economy. Tourism accounts for around 7% of the GDP of Jammu & Kashmir. The tourism industry generates employment for almost five lakh people of the local population both directly and indirectly.

Handicrafts have long been the soul of J&K’s economy- labour-intensive, rooted in tradition, and a wellspring of large-scale employment. From embroidery, shawls, papier-mâché, wood carving, and jewellery to silken carpets, these creations not only preserve cultural identity but also secure a strong foothold in international markets, earning valuable foreign exchange.

Complementing this is the handloom tradition, celebrated for weaving Pashmina, Raffal, silk sarees, and fine cotton fabrics. Both sectors, deeply embedded in the socio-economic fabric of the region, remain crucial for sustaining livelihoods, while strengthening J&K’s role as a global hub of heritage and artistry. The handloom and handicraft sector employs over 3.5 lakh direct and indirect people, including artisans and marginalized workers. Notably, women account for nearly 45% of these jobs.

It may be recalled that in 2015, an INR 800 million package was sanctioned for the the state of Jammu & Kashmir, causing a massive infrastructure push. Several highways were built and upgraded, which saw construction of tunnels and in difficult terrain, which were regarded as engineering marvels. Moreover, a strong network of rural roads was developed, which not only reduced travel time but created employment generation opportunities for people in remote areas by linking markets. The government has placed heavy emphasis on correcting the region’s historical infrastructure deficits, particularly in energy and transport.