Jammu and Kashmir has a prominent economic paradox. 

Its orchards produce some of India’s finest apples, its artisans make crafts sold in international markets, and its mountains, lakes and meadows attract visitors from around the world. 

The region has water resources, hydropower potential, fertile land and a young population. Public funding also provides substantial support for development.

Still, prosperity remains an unfinished project. 

The real test of economic policy is whether an apple grower earns more from a harvest, a craftsman receives a fair price for his work, or a young graduate finds a productive job close to home.

The difference between economic growth and household income is central to J&K’s future. 

A larger budget can finance roads, buildings and public services. Lasting prosperity depends on whether these investments help people produce more, reach better markets and build businesses that survive beyond government support.

The figures explain the scale of the challenge. 

J&K’s economy is estimated at ₹3.16 lakh crore for 2026-27, with nominal growth projected at 9.5 per cent over the previous year’s revised estimate. 

Real growth for 2025-26, however, is estimated at 5.8 per cent, below India’s projected 7.4 per cent.

Per-capita GSDP in J&K is estimated at ₹2,06,189 for 2025-26, against ₹2,51,393 nationally. Estimated per-capita income stands at ₹1,68,243. 

These figures suggest that growth alone will not close the income gap. Productivity must rise, and a larger share of the value generated by local industries must reach the people who sustain them.

The public finances reveal another tension. 

Of J&K’s budgeted revenue receipts of ₹90,018 crore in 2026-27, central grants are expected to contribute ₹58,218 crore, or about 65 per cent. The remaining ₹31,800 crore is projected from the region’s own revenue sources.

Central assistance is indispensable to development in a region with substantial public spending needs. Its long-term value, however, depends on what it helps create. 

A cold-storage facility that enables fruit growers to........

© Kashmir Observer