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Introduction to the economy of Jammu & Kashmir
The pillars of any state rest on the building blocks of Economy, Environment, Education, EMPLOYMENT and Healthcare. Although each block is indispensable for the strength and development of a progress yet “Economy” is the foundation on which the flourishing of a state depends. When we talk of measuring the size and performance of any economy we take assistance from time tested and globally accepted quantitative techniques of economics. One such main indicator of measuring NATIONAL INCOME is the “Gross Domestic Product” (GDP).
The Gross State Domestic Product (GSDP) also known as State income estimates are the macro-indicators of the State economy. These estimates give broader results due to different policy interventions, investments made and opportunities opened up in the State. The advance estimates for 2015-16 put the GSDP at Constant prices(2011-12) at Rs 91806.25 crore. According to these estimates the per capita GSDP for 2015-16 has been Rs.57858 . During the period, GSDP at constant prices recorded Growth rate of 7.79% during 2015-16 over previous year, per capita GSDP for the same year has increased by 6.57%. The relative growth rate figures in GDP and per capita GDP for 2015-16 at constant prices were 7.60%(GDP) and 6.23%(Percapita income). Likewise GSDP at current prices for the year 2015-16 has been evaluated at Rs.11610.98crore measuring the per capita income at Rs 74580. Theserespective estimates at all India are Rs.13567192 crore and Rs.93231 for 2015-16. GSDP during 2015-16(AE) has risen by 13.07% over previous year and per capita income has increased by 13.69% at current prices. During 2015-16 over 2014-15 growth rate in GDP and per capita GDP at current prices are 8.71 % and 7.31% respectively.
The three important components of the state’s GSDP are agriculture & Allied sector, Industry & Manufacturing and Services. Respective contributions of these sectors during 2015-16 have been 15.89%, 27.11% and 57.00%. The highest increase of 8.37% has been observed in Tertiary Sector followed by 21.57% and 0.40% rate of growth in Primary and Secondary sectors respectively during 2015-16.
Agriculture & Allied Sectors:
The contribution of Agriculture sector to GSDP as steadily declining. But agriculture sector is demographically the largest economic sector and plays a remarkable role in the overall socioeconomic fabric of the state. Boosting Agricultural growth is very essential for Inclusive Growth. The sector sustains livelihood of over 70 percent of the Population. However, the contribution remains only 15.89 percent to GSDP. This is because the productivity of major agricultural crops is very low in comparison to other states and rest of the country .Technological and scientific insufficiency in agriculture sector seems the important cause. The yield per hectare of food grains, fruits and vegetables are far below the countrylevel.Agriculture is the single most important livelihood for the people. Paddy, Maize and Wheat are the major crops of Kashmir region. While maize and wheat are the major crops of Jammu region. Barley is the major crop of Ladakh region followed by wheat. The state is bestowed with different agro climatic conditions for growing a variety of Horticulture-2/”>Horticulture crops like fruits and vegetables, Plantation Crops and floriculture. Kashmir’s agriculture is famous worldwide as the world’s high quality saffron is produced in valley and its mainconcentration is in Pulwama&Budgam districts. Kashmir province accounted for nearly 98% of the total area in the state under the crop is cultivated and Jammu division is confined to few pockets. The state ranks first in the country in the production of saffron. It is the world’s most expensive spice and the most famous ingredient for colouring and flavouring butter, cheese, confectionary, backed food and medicines.
The suitable climatic conditions and fertile Soil of the region provide huge scope for development of horticulture sector. Moreover, this sector is labour intensive in nature and provides employment opportunities to a significant number in the processing of its produce and contributes substantiallyin the state economy. A large variety of fruits such as apple, pear, walnut, almond, cherry, apricot are produced in the state. In fact export of fruits form the base of the state’s trade. According to data, the Percentage of gross irrigated area to gross cropped area in the state is decreased as 44.75% for the year 2015-16 as against 45.32% at national level for 2008-09. With enough of grazing land in hill areas of the state, Livestock is of distinct advantage and an integral part of the agrarian sector. Rearing of livestock is best suited to these areas and plays an important role in encouraging mountain farming. The agrarian nature of the state provides tremendous scope for encouragement of all agriculture related sectors like, mushroom development, Apiculture, floriculture, Fisheries-2/”>Fisheries, sericulture development etc. According to 2007 census, the state contributes about 2% in the total livestock of the country. As per ISS report for 2010-11, milk production of the state was estimated at 16.09 lakh metric tonnes. Dairy is the backbone of livestock sector in the state. As per 19 th livestock census 2012,the number of Poultry birds was 82.73 lakh in the state as compared to 7292.09 lakh in India. During 2015-16 Fish production of the state has reached to 2.00 lakh quintals.
Tourism: Tourism is emerging as one of the most important contributor to the state economy. The state has a world class potential in tourism which ranges from historical and religious destination to its natural fascination. The Kashmir valley is well-known for its gorgeous natural beauty, splendid scenery throughout the world. Its high snow clad Mountains scenic spots, beautiful valleys, gushing rivers, attractive lakes and springs, lush green forests, pastures, meadows and beautiful Health resorts enhance its grandeur are a source of great attraction for tourists all-round the year. Pilgrimage to famous religious shrines of the Hindus and Muslims make Kashmir valley a great tourist attraction. In fact Mughals have rightly described Kashmir valley as the “paradise on earth”. Government also paying careful attention for the 11 developmental projections of this sector such as operationalization of Gandola Cable Car Project at Gulmarg, golf course at Srinagar (Royal springs), Gulmarg&Pahalgam. During the Year 201, Kashmir Valley witnessed inflow of 623 thousand tourists including foreign tourists. The Handicraft sector maintains an important place in the economic structure of the state and has worldwide acclaim for high quality craftsmanship, attractive designs and functional utility and crafts like embroidery, shawls, crewel, namda, chainstich, woodcarving, papier-machie, kani shawls, costume, jewellery and carpets hold a significant share in the overall production and export of state. Silk carpets constitute a specialty having no parallel in quality and design at national level and, therefore, occupy an important position in the international market as the carpet industry is contributing towards Foreign Exchange reserve of the country. Handloom industry is the largest unorganizedsector as it specialized in manufacturing of fabrics like pashmina shawls, ruffle shawls, shahtoosh shawls, silk sarees and other Cotton items which have great demand in the national and international markets.
Banking: Banks dominated the financial market of the State. Infrastructure-2/”>INFRASTRUCTURE-development/”>Infrastructure Development has heavy dependence on bank financing. The insurance sector though well capitalized is significantly opened to banking system. Banking sector of J&K consists of Public Sector Banks, Private sector Commercial Banks, Regional Rural Banks and Central/State Co-operative Banks. Their performance has been progressively improving in respect of mobilization of Savings, deployment of credit, disbursement of micro credit under NABARD’s Self Help Group, Bank Linkage Program supporting Government Programs etc.
Power:The state has a potential to generate 20,000 MWs of Hydro Power of which only 16475 mws of hydel potential has been discerned. The power generated by the State for 2015-16 is 3990.127 million units under state sector power projects against 104867.3 MU of in 2014-15.
Roads: The sustainable and inclusive economic growth calls for an effective and substantial road Network. Road infrastructure is crucial for sustainable growth of the economy alongwith industrialization.The NH-44 connects the capital cities of Srinagar and Jammu with rest of the country .The total length of roads in the state ending March 2015 was 39096 km as compared to 5472144 km in India. The BanihalQazigund road tunnel, which is 8 km long, is under construction and and may be completed by 2018.
Development towards building up railway infrastructure is at pace in the state. Rail transport is available now from Lakhanpur to Katra in Jammu region and from Banihal to Baramulla in Kashmir region. Construction of 237 Km long rail line from Katra to Baramulla in Kashmir is in full swing and may be completed by 2020. Indian Railways are making strong efforts in developing and providing rail link up to Kashmir. This special project has been declared as National Project in 2020. Recently 11 km long railway tunnel, located in PirPanjal range, fromBanihal to Qazigund has been commissioned. This tunnel is Asia’s 4th longest and India’s longest.
POVERTY:Poverty reduction is one of the main goal of development Planning. As per the survey results, the total BPL Estimated Population Ratio of J&K State has been reached at 21.63 percent (24.21 lakhs persons) of which 26.14 percent (22.00 lakhs persons) are from Rural areas and 7.96 percent (2.21 lakhs persons) are living in Urban areas. This shows that about one fifth of the State’s population falls below the poverty.
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The Jammu and Kashmir economy is a diverse and complex one, with a long and rich history. The region has been a major center of Trade and Commerce for centuries, and its economy has been shaped by its unique geography, culture, and political history.
The current state of the Jammu and Kashmir economy is mixed. The region has a high rate of poverty, and its infrastructure is in need of significant Investment. However, the economy has also shown signs of growth in recent years, driven by the expansion of the tourism sector and the development of new industries.
The major sectors of the Jammu and Kashmir economy are agriculture, tourism, and manufacturing. Agriculture is the largest sector of the economy, employing over 50% of the workforce. The region is a major producer of rice, wheat, and other crops. Tourism is also a major Source Of Income for the region, with millions of visitors coming to Jammu and Kashmir each year to see its stunning scenery and historical sites. Manufacturing is a smaller sector of the economy, but it is growing rapidly. The region is home to a number of factories that produce textiles, electronics, and other goods.
The Jammu and Kashmir economy faces a number of challenges. The region is heavily dependent on agriculture, which is vulnerable to weather fluctuations and pests. The infrastructure in the region is also in need of significant investment. The government has been working to improve the infrastructure, but progress has been slow.
The Jammu and Kashmir economy also faces a number of political challenges. The region has been disputed between India and Pakistan for decades, and the conflict has had a negative impact on the economy. The region has also been affected by terrorism, which has further disrupted the economy.
Despite the challenges, the Jammu and Kashmir economy has shown signs of growth in recent years. The expansion of the tourism sector and the development of new industries have helped to boost the economy. The government is also working to improve the infrastructure and address the political challenges. The future of the Jammu and Kashmir economy looks promising, but there are still a number of challenges that need to be addressed.
The Jammu and Kashmir economy has a number of opportunities. The region has a young and educated population, which could be a major asset for the economy. The region also has a number of natural Resources, including Minerals, water, and forests. These resources could be used to develop new industries and create jobs.
The Jammu and Kashmir economy also has a number of advantages. The region is located in a strategic location, with access to both India and Pakistan. The region also has a number of historical and cultural sites, which could be used to attract tourists.
The Jammu and Kashmir economy is facing a number of challenges, but it also has a number of opportunities. The government is working to address the challenges and capitalize on the opportunities. The future of the Jammu and Kashmir economy looks promising.
What is the economy of Jammu and Kashmir like?
The economy of Jammu and Kashmir is a Mixed Economy with a large service sector, a small Industrial Sector, and a significant agricultural sector. The service sector accounts for about 55% of the state’s GDP, followed by the industrial sector at about 25% and the agricultural sector at about 20%.
What are the main industries in Jammu and Kashmir?
The main industries in Jammu and Kashmir are tourism, agriculture, and handicrafts. Tourism is the largest industry in the state, accounting for about 10% of the state’s GDP. Agriculture is the second largest industry, accounting for about 15% of the state’s GDP. Handicrafts are the third largest industry, accounting for about 5% of the state’s GDP.
What are the main challenges facing the economy of Jammu and Kashmir?
The main challenges facing the economy of Jammu and Kashmir are poverty, Unemployment, and infrastructure development. Poverty is a major problem in the state, with about 20% of the population living below the Poverty Line. Unemployment is also a major problem, with about 25% of the working-age population unemployed. Infrastructure development is also a major challenge, with the state having a poor road network, electricity supply, and water supply.
What are the government’s plans to address the challenges facing the economy of Jammu and Kashmir?
The government has a number of plans to address the challenges facing the economy of Jammu and Kashmir. These plans include:
- Increasing investment in agriculture and allied sectors
- Promoting tourism
- Developing infrastructure
- Creating employment opportunities
- Reducing poverty
What are the prospects for the economy of Jammu and Kashmir in the future?
The prospects for the economy of Jammu and Kashmir in the future are positive. The state has a number of strengths, including a young population, a strategic location, and a rich natural resource base. With the right policies and investments, the state can achieve rapid economic growth and development.
1. Which of the following is not a major sector of the Jammu and Kashmir economy?
(A) Agriculture
(B) Tourism
(C) Manufacturing
(D) Information Technology
2. The main crops grown in Jammu and Kashmir are:
(A) Rice, wheat, and maize
(B) Apples, walnuts, and saffron
(C) Tea, coffee, and rubber
(D) Cotton, sugarcane, and oilseeds
3. The main tourist attractions in Jammu and Kashmir are:
(A) The Dal Lake, the Mughal Gardens, and the Amarnath cave
(B) The Pir Panjal Range, the Chenab River, and the Ladakh region
(C) The Jammu Fort, the Hari Parbat Fort, and the Hazratbal Shrine
(D) The Srinagar Airport, the Jammu Railway Station, and the Leh Airport
4. The main industries in Jammu and Kashmir are:
(A) Agriculture, tourism, and handicrafts
(B) Manufacturing, mining, and power generation
(C) Information technology, pharmaceuticals, and Biotechnology
(D) Banking, insurance, and financial services
5. The main exports of Jammu and Kashmir are:
(A) Apples, walnuts, and saffron
(B) Carpets, shawls, and embroidery
(C) Machinery, equipment, and chemicals
(D) Software, services, and intellectual property
6. The main imports of Jammu and Kashmir are:
(A) Foodgrains, petroleum products, and machinery
(B) Consumer goods, Capital Goods, and Intermediate Goods
(C) Raw materials, semi-finished goods, and finished goods
(D) Services, technology, and investment
7. The main trading partners of Jammu and Kashmir are:
(A) India, Pakistan, and China
(B) Afghanistan, Bangladesh, and Nepal
(C) Sri Lanka, Maldives, and Bhutan
(D) Myanmar, Thailand, and Vietnam
8. The main economic challenges facing Jammu and Kashmir are:
(A) Poverty, unemployment, and infrastructure development
(B) Insecurity, terrorism, and political instability
(C) Environmental Degradation, Climate change, and natural disasters
(D) Corruption, Nepotism, and crony capitalism
9. The main economic opportunities for Jammu and Kashmir are:
(A) Agriculture, tourism, and handicrafts
(B) Manufacturing, mining, and power generation
(C) Information technology, pharmaceuticals, and biotechnology
(D) Banking, insurance, and financial services
10. The main economic policies of the government of Jammu and Kashmir are:
(A) AGRICULTURE DEVELOPMENT, tourism promotion, and industrial development
(B) Infrastructure development, Human resource development, and social sector development
(C) Economic Reforms, Fiscal Consolidation, and Monetary Policy
(D) Trade Liberalization-2/”>Liberalization, investment promotion, and competition policy
Answers:
1. (D)
2. (B)
3. (A)
4. (A)
5. (A)
6. (A)
7. (A)
8. (A)
9. (A, B, C)
10. (A, B, C)