Free mock test
Structure and Size of the Economy

Structure and Size of the Economy

Foundations of the Economy · 2 min read

Size and growth

IndicatorFigure
Nominal GSDP, 2025-26 (advance estimate)About Rs 2.86 lakh crore (growth 8.89%)
Real GSDP growth, 2025-26 (AE)5.82%
Real GSDP, 2025-26About Rs 1.50 lakh crore
Real GSDP CAGR 2019-20 to 2024-254.47% (Delhi 3.95%, Himachal 3.68%, Haryana 4.43%)
Budgeted GSDP 2026-27Rs 3,15,822 crore (+9.5%)
Share in India's GDPAbout 0.8% (close to population share)
Per capita income 2025-26 (AE)Rs 1,68,243 (India Rs 2,19,575)
Per capita income CAGR 2019-20 to 2024-258.81% (Himachal 6.54%, Delhi 6.74%, Punjab 7.46%, Chandigarh 8.21%, Haryana 8.72%)
J&K PCI as share of India's71.9% (2014-15) to about 76.5% (2025-26)
Inflation4.5% (2024) to 3.8% (2025)
Nominal GSDP of J&K (Rs lakh crore)Nominal GSDP of J&K (Rs lakh crore). Size of the economy at current pricesNominal GSDP of J&K (Rs lakh crore)Size of the economy at current prices0.00.81.52.33.03.82.652024-25 (AE)2.862025-26 (AE)3.162026-27 (Budget)Source: Economic Survey 2025 and 2025-26; J&K Budget 2026-27 (Rs 3,15,822 crore) | JKEdusphere
Nominal GSDP of J&K. The 2024-25 and 2025-26 values are advance estimates; 2026-27 is the budgeted figure.
Per capita income: J&K vs India (Rs, current prices)Per capita income: J&K vs India (Rs, current prices). J&K is about three-quarters of the national figurePer capita income: J&K vs India (Rs, current prices)J&K is about three-quarters of the national figure050,0001,00,0001,50,0002,00,0002,50,0001,54,7032,00,1622024-25 (advance est.)1,68,2432,19,5752025-26 (advance est.)Jammu & KashmirIndiaSource: J&K Economic Survey 2025 and 2025-26 | JKEdusphere
Per capita income of J&K against India. J&K has been catching up slowly.

Sector shares

The economy is service-led. Sector shares in Gross State Value Added (GSVA), 2025-26 (AE):

SectorShare of GSVAShare of employment (PLFS 2023-24)
Primary (agriculture, allied, forestry, mining)20.45%42.99%
Secondary (manufacturing, power, construction)18.52%25.7%
Tertiary (trade, transport, tourism, finance, public administration)61.02%31.31%
GSVA share vs share of jobs, J&K (per cent)GSVA share vs share of jobs, J&K (per cent). Services earn most of the income; farming still employs the most peopleGSVA share vs share of jobs, J&K (per cent)Services earn most of the income; farming still employs the most people0153045607520.45%42.99%Primary (agri, allied, mining)18.52%25.7%Secondary (industry, construction)61.02%31.31%Tertiary (services)Share of GSVA, 2025-26 (advance est.)Share of employment, PLFS 2023-24Source: J&K Economic Survey 2025-26 | JKEdusphere
Farming employs the most people but earns about a fifth of income; services earn about three-fifths.

Main features

  • Service-led, but farm-heavy jobs. Horticulture alone is worth about Rs 10,000 crore a year and supports about 35 lakh people (about 7 lakh families).
  • Dependence on Central grants. Grants-in-aid are 56 to 66% of total budget resources (see Budget topic).
  • Small industrial base. MSMEs give about 60% of industrial investment, 90% of industrial jobs and 6% of GSDP.
  • Seasonality and risk. Tourism, fruit and crafts depend on weather, security and road links.

Keep practising

Notes are only half the work. Test yourself with questions and discuss doubts with other aspirants.

Free mock testsJoin Telegram

Prepared for exam revision from the J&K Economic Survey 2025-26, J&K Budget 2026-27, PRS Legislative Research, NITI Aayog and replies in Parliament and the Legislative Assembly. Figures are advance estimates or latest available and official replies sometimes differ, so check the latest Economic Survey and Budget before relying on them. Found a mistake? Tell us.