Gross Domestic Product (GDP) of Union Territory of Jammu and Kashmir is projected to cross Rs 2 lakh crore with a growth rate forecasted at 7.5 percent during the financial year of 2021-22.
“GDP growth for the year 2021-22 has been projected at 2.01 lakh crore which shows a growth of 7.5 percent,” reads an official document of the Central government. In the previous financial year, J&K’s GDP was pegged over Rs 1.7 lakh crore.
Gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced within borders of a state/ country in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of a given state’s economic health.
“The tax/GDP ratio is projected at 8.10 percent for 2021-22 which is higher than the previous year of 7.08 percent. Debt/GDP ratio for previous years has consistently remained below 48% which is within FRBM limits,” official document adds.
A senior official said that during last fiscal year when the lockdown was imposed across the country, there was not much impact felt on J&K’s GDP given its primary dependence on government expenditure and horticulture and agriculture sectors.
“There was no drastic impact on J&K’s GDP as was seen at the national level because our economy is government driven,” said a senior finance department official who wished not to be named.
The official said that most of “J&K’s income comes from the government and its horticulture, agriculture and handicraft sectors, which are unlikely to contract.”
J&K’s economy is primarily services based and agri-oriented. Gross State Domestic Product (GSDP) increased at a CAGR of 10% between 2015-16 and 2018-19 to reach Rs. 1.56 trillion (US$ 22.31 billion).
“With varied agro-climatic conditions, the scope for horticulture is significantly high in J&K. Food processing and agro-based industries (excluding conventional grinding and extraction units) thrive in the UT. J&K has an ideal climate for floriculture and an enormous assortment of flora and fauna. J&K has Asia’s largest tulip garden,” it reads.
“J&K’s handicrafts are world famous and the traditional handicraft industry has emerged as a large industry. Due to its large employment base and export potential, the industry has been receiving priority attention from the government.”
The UT is also famous for its small-scale and cottage industries such as carpet weaving, silks, shawls, basketry, pottery, copper and silverware, papier-mâché, and walnut wood. The cottage handicrafts industry provides direct and gainful employment to around 340,000 artisans.
As of November 2020, J&K had a total installed power-generation capacity of 3423.13 MW, comprising 1812.35 MW under central utilities, 1535.98 MW under UT utilities and 74.80 MW under private utilities.