J&K economy witnessing strong growth momentum: LG Sinha
Says JK recorded 1.78 crore tourist visits in 2025 despite security incidents, natural calamities
Jammu: Lieutenant Governor Manoj Sinha on Monday said the economy of Jammu and Kashmir has demonstrated encouraging momentum in recent years, with the Union Territory recording an annual nominal growth rate of around 11 per cent in 2024-25.
He said that the growth reflects positive outcomes of sustained policy reforms, enhanced infrastructure development and proactive investment facilitation.
“The economy of J&K has demonstrated encouraging momentum in recent years. The Union Territory recorded an annual nominal growth rate of around 11 per cent (2024-25), reflecting the positive outcomes of sustained policy reforms, enhanced infrastructure development, and proactive investment facilitation,” Sinha said while addressing members of Legislative Assembly here at the start of the budget session.
Sinha said the government remains committed to consolidating this growth trajectory through strengthened fiscal discipline and creating diversified and sustainable employment opportunities, with particular emphasis on youth and women.
The Lieutenant Governor said Jammu and Kashmir has emerged as one of the fastest-growing Union Territories in the country, with GST revenue collections increasing from Rs 8,064 crore in 2023-24 to Rs 8,586 crore in 2024-25.
He added that tariff from electric power witnessed a substantial increase of 16 per cent during 2024-25. Highlighting financial assistance, Sinha said the Special Assistance to States for Capital Infusion (SASCI), which provides interest-free loans for capital investments, has been extended to J&K from the current financial year.
He said Rs 1,431 crore has been sanctioned under SASCI for 222 projects, along with Rs 210 crore as matching share for 12 centrally-sponsored schemes.
“The first instalment of Rs 1,083 crore, accounting for 66 per cent of the sanctioned amount, has already been received,” he said.
The Lieutenant Governor said that digital governance has seen significant progress, with the Union Territory recording 82 crore e-transactions during the previous year, averaging over 22 lakh transactions per day.
He said 128 services have been integrated with DigiLocker, while complete Aadhaar seeding of welfare beneficiaries has enabled seamless Direct Benefit Transfer (DBT).
He said that around Rs 9,000 crore has been credited directly to the accounts of 80 lakh beneficiaries through 77 DBT-based schemes during the current financial year.
Sinha added that the government is also formulating a comprehensive Artificial Intelligence strategy to drive innovation and efficiency across priority sectors, including healthcare, agriculture, mobility, education and law enforcement.
Referring to governance reforms, Sinha said the government has laid renewed emphasis on responsive and people-centric administration.
He said regular public grievance redressal meetings at the Chief Minister’s Outreach Office and the strengthening of the JK Samadhan portal have helped resolve thousands of grievances through time-bound interventions.
The Lieutenant Governor also said Jammu and Kashmir Bank has undertaken various reforms with the support of the UT government, including professionalisation of management, merit-based selection of top posts and capital infusion.
He said these measures have resulted in a turnaround of the bank, improving its net non-performing assets and capital adequacy. Highlighting infrastructure development, Sinha said that the road sector has witnessed unprecedented investment of Rs 61,528 crore, covering expressways, national highways, ring roads and tunnels to enhance regional and inter-regional connectivity.
He said that three major tunnels, including the Sonamarg Tunnel, have been completed, while eight others, including the strategic Zojila Tunnel, are at advanced stages of completion.
The Narbal–Shopian–Surankote road has also been declared a National Highway, further strengthening all-weather connectivity across the Pir Panjal region, he added.
Sinha said that tourism continues to be a vital pillar of Jammu and Kashmir’s economy, with the Union Territory recording 1.78 crore tourist visits in 2025 despite security-related incidents and natural calamities.
“Despite challenges arising from security-related incidents and natural calamities, the Union Territory recorded 1.78 crore tourist visits in 2025,” Sinha said while addressing members of the Legislative Assembly on the inaugural day of the Budget session beginning Monday.
The lieutenant governor referenced security incidents and natural calamities, including the Pahalgam attack, Operation Sindoor, and last year’s floods.
Sinha noted that tourism has been accorded industry status to attract investment and generate employment in the region. He highlighted the opening of the first-ever Chrysanthemum Garden, Bagh-e-Gul-e Dawood, for tourists in October 2025, which aims to promote Kashmir as a year-round destination.
“With more than 50 vibrant varieties, the garden is a strategic cornerstone in our mission to transition Kashmir into a year-round destination. Just as the tulip garden defines our spring, Bagh-e-Gul-e Dawood is set to become the definitive icon of autumn and will attract tourists during the lean season,” he said.
Sinha further shared that the government has undertaken confidence-building measures, improved tourist facilitation and strengthened coordination with stakeholders to boost the sector. “Special focus has been laid on reviving pilgrim tourism in Jammu, adventure tourism in Kashmir and eco-tourism in tribal and border areas to ensure balanced regional growth,” he added.
He noted that the government is planning to launch a significant project for the sustainable development of emerging tourist destinations through public and private sector investments to expand the tourism footprint across the Union Territory.
Highlighting achievements in the power sector, Sinha said it has witnessed a structural transformation, with major hydropower projects, including Pakal Dul, Kiru, Kwar and Ratle, having a combined capacity of 3,014 MW, under execution.
He said that in the last five years, 5,708 MVA capacity has been added to the distribution sector and 4,239 MVA to the transmission sector. “Installation of smart prepaid meters is underway in mission mode, with 10.44 lakh meters already installed and 100 per cent coverage targeted by 2026-27,” he said.
The lieutenant governor mentioned that power losses have reduced by nine per cent, while revenue realisation has increased by 16 per cent. He added that solarisation of government buildings and households under the PM Surya Ghar Muft Bijli Yojana has further strengthened renewable energy adoption, with over 6,700 government buildings and more than 16,800 households already solarised.
Sinha also described the railway connectivity to Kashmir as a historic milestone, saying that the Valley has now been linked with the rest of the country, opening new avenues for trade, tourism and economic progress.
He informed that a full-fledged railway division has been sanctioned for Jammu and Kashmir, and expansion and modernisation of the Jammu Tawi railway station is underway.
Emphasising infrastructure development, the lieutenant governor said the road sector has witnessed unprecedented investment of Rs 61,528 crore, including expressways, national highways, ring roads and tunnels, significantly improving connectivity.
He reported the completion of three major tunnels, including the Sonamarg Tunnel, while eight others, including the critical Zojila Tunnel, are at advanced stages of completion. Additionally, the Narbal–Shopian–Surankote road has been declared a National Highway to strengthen all-weather connectivity across the Pir Panjal region, he said.
Sinha said that 19 new National Highway projects worth Rs 10,637 crore have been sanctioned for 2025-26, including key works such as the Pir Ki Gali Tunnel, Sadhna Tunnel, Lal Chowk–Parimpora Flyover and Magam Flyover, aimed at easing traffic congestion and improving urban mobility.
