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Jammu Kashmir
Economic Infrastructure
Investment Incentives
Policy Framework

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General Information

Jammu and Kashmir is the northern most state of republic of India, lying mostly in Himalayan Mountains. Jammu and Kashmir shares a border with Himachal Pradesh to the south, Pakistan to the west and People's Republic of China to the north and east. Jammu and Kashmir consists of three divisions: Jammu, Kashmir valley and Ladakh. Srinagar is its summer capital, and Jammu its winter capital. The Kashmir Valley is famous for its beautiful mountainous landscape. Jammu is known as "City of Temples" attracts tens of thousands of Hindu and Muslim piligrims every year. Ladakh, also known as "Little Tibet", is renowned for its remote mountain beauty and Buddhist culture which was established as early as the 2nd century.

Fact File

Geographical Area 2.22 (lakh sq. km)
Capital Srinagar (Summer)
Jammu (Winter)
Population (2001 Census) In lakhs 101.44
Gross state Domestic product (GSDP) at current prices in 2004-2005 (as of Feb 2006)* US$ 4.49297 bn
Gross state Domestic product (GSDP) at constant price (1993-94) in 2004-2005 (as of Feb 2006) US$ 2.28899 bn
Net State Domestic Product at Current Prices (2004-05) US$ 3.88901 bn
Net State Domestic Product at Constant Prices (1993-1994) for (2004-05) US$ 1.93916
Per Capita Income at current prices (2004-2005) US$ 349.630
Percentage of State Population to All India Population 0.99
Share of primary sector of the total GSDP in 2004-2005 30%
Share of secondary sector of the total GSDP in 2004-2005 17.5
Share of tertiary sector of the total GSDP in 2004-2005 53%
Total Investments (as on Jan 2006) US$ 6.18613 bn
Literacy Rate (2001 Census) 55.52%
  • Male
  • Female


Principal languages Urdu, Dogri, Kashmiri, Pahari, Punjabi,English, Ladakhi, Balti, Gojri and Dadri

*Source: CSO Estimates

Advantage Jammu and Kashmir

  • Stable Industrial Policy
  • Attractive Incentive and Subsidy Package
  • Rich resources of Water, Agro, Forests, Herbal and Minerals
  • Tremendous potential for investment in tourism sector.
  • Good Infrastructure and Support System
  • The people of the state possess inherent skills of weaving and designing of textile products, which could be the basis for setting up of state-of-the art textile industry in the state.

Economic Infrastructure


The total road length maintained by PWD in the state has reached to 15,012 km. As many as 84 road projects are under execution. Jammu and Kashmir is very well connected with the rest of the country through National Highway up to Leh through Kargil (Ladakh).


The state is well -connected with the country's railway network. The rail connectivity has been already extended up to Udhampur District. Work on connectivity to Srinagar and Baramullah is going on. Udhampur -Katra and Quazigund- Baramullah Rail link project has been taken up as national project which is likely to be completed by 2007.


Srinagar, Jammu and Leh are major airports connecting Jammu and Kashmir with the rest of the country. The Srinagar airport has been upgraded to international level.


The installed capacity of power utilities in Jammu and Kashmir as on 31st January 2007 stood at

Grand Total
State 429.15 0.00 175.00 8.94 183.94 10.59 0.00 623.68
Private 0.00 0.00 0.00 0.00 0.00 0.52 0.00 0.52
Central 607.76 198.59 127.09 0.00 325.68 0.00 68.00 1001.44
Sub-Total 1036.91 198.59 302.09 8.94 509.62 11.11 68.00 1625.64

Initiatives in Power sector

  • The state government is trying to take a share in the following projects

    • Thermal- ONGC projects; 300 MW Jindal Power Project, Chattisgarh

    • Large Reservoir Based Hydro - 750MW West Seti Hydro Project, Nepal

  • Unlike most of the Hydropower generators currently available to Jammu and Kashmir, the West Seti Hydro Electric Project has a large storage reservoir with a capacity of one month's water requirement. This reservoir enables the project to provide a peaking facility of about 8 hours a day, including during the low flow winter months. Hence this project is well suited to Jammu and Kashmir load profile.

  • The Jammu and Kashmir government has requested Prime Minister Manmohan Singh to look into the feasibility of transferring some central power projects in Jammu and Kashmir to the state government particularly.1,000 MW Pakal Dul Hydro Power project in Kishtwar of Doda district to the state government.

  • The Prime Minister is said to have assured handing over the Pakal Dul project to Jammu and Kashmir. This project is estimated to be constructed at Rs.5,089 crore and it will have four units of 250 MW each.

  • Agencies in the state have identified nearly 30 small and medium power projects, ranging from 2 MW to 200 MW, to be taken up for construction.
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