There is good  news in Jammu and Kashmir’s latest income figures, but there is also a larger economic question we should not ignore. Per capita income in J&K increased from `62,327 in 2014–15 to `1,54,703 in 2024–25, an increase of nearly 148 per cent in ten years. This reflects an expanding economy, but the real story lies beyond the headline figure. What kind of economy are we building, and is this growth creating enough productive jobs and better incomes for ordinary people?

J&K’s economy is estimated at around `2.65 lakh crore in 2024–25. The primary sector contributes approximately 20 per cent of Gross State Value Added (GSVA), the secondary sector 18.3 per cent and the services sector 61.7 per cent. At first glance, these figures suggest a reasonably diversified economy. A closer examination, however, reveals a different picture: a large dependence on services and public administration, substantial livelihood dependence on agriculture, seasonal tourism and a relatively small manufacturing base.

This is where the real economic challenge begins.

What Does the Income Figure Actually Mean?

Divide `1,54,703 by 365 and the result is approximately `424 a day.

Of course, this does not mean that every person in J&K earns `424 daily. Per capita income is an average measure of economic output, not an individual’s salary. It also does not tell us how income is distributed among households.

A hotel owner, a government employee, an orchardist and an unemployed graduate do not experience economic growth in the same way. The average can increase even when a significant section of the population sees little improvement in its income.

There is another important factor. The 148 per cent increase is measured at current prices, which means inflation is included. The actual improvement in purchasing power is therefore smaller.

Nevertheless, the progress deserves recognition. The more important question is whether this growth is translating into better wages, stable employment, stronger businesses and improved household incomes.

The Gap with the National Average

India’s per capita Net National Income in 2024–25 stood at approximately `2,00,162, compared with `1,54,703 in J&K. This means J&K’s per capita income is around 77 per cent of the national average.

The gap has narrowed compared with earlier years, which is encouraging. But it remains significant.

Why do some states generate considerably higher incomes than J&K? The answer is not simply that they have more economic activity. Many have developed stronger manufacturing industries, technology businesses, financial services, pharmaceutical companies and export-oriented enterprises.

These businesses create value beyond their immediate local markets. They generate employment, develop supply chains, attract investment and improve worker productivity.

J&K........

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