Srinagar: Jammu and Kashmir has recorded its highest-ever annual investment of Rs 5,824.42 crore in the financial year 2025–26, marking a major milestone in the Union Territory’s industrial growth and economic transformation.
Official figures show the investment is more than 13 times the average annual inflow recorded between 2014 and 2021, reflecting a sharp and sustained rise in industrial activity across the region.
The upward trend has remained consistent over the past few years, with investments increasing from Rs 2,153 crore in 2022–23 to Rs 3,389 crore in 2023–24 and Rs 4,145 crore in 2024–25, before reaching the current record level.
For the first time, several anchor investments of more than Rs 500 crore are being grounded in Jammu and Kashmir.
As many as 312 industrial units involving a cumulative investment of Rs 7,864 crore have completed over 50 per cent of groundwork and are expected to begin production soon.
The conversion of investment proposals into operational units has also improved significantly. Under the New Central Sector Scheme (NCSS), nearly 89 per cent of registered units have already started production. Over the past three years, incentives worth Rs 2,513 crore have been disbursed under schemes such as NCSS, GST reimbursement, PMEGP and other programmes of the Industries and Commerce Department.
The MSME sector has also witnessed strong formalisation. Udyam registrations have risen sharply from just 24,000 in 2021 to 6.16 lakh in 2025–26, with the total expected to cross 7.1 lakh during the current financial year.
On ease of doing business, Jammu and Kashmir has secured the 5th rank nationally under the Business Reforms Action Plan (BRAP) 2024 based on independent stakeholder feedback. Reform implementation has improved from just 0.30 per cent in 2016 to 100 per cent compliance.
Nearly 79 per cent of over 8.11 lakh applications received through the single-window clearance system have been approved, while 89 per cent were cleared within the prescribed timelines. Rejection rates remain below five per cent.
The startup ecosystem has also expanded rapidly. A total of 1,305 startups have been registered with the J&K Entrepreneurship Development Institute till 2025–26, compared to only 69 in 2020. Out of these, 816 startups were registered in the last financial year alone.
Officials said the New Startup Policy 2024 is currently being implemented, with financial support already extended to 25 startups and four incubators.
To improve industrial competitiveness, the government is offering highly subsidised industrial land at premiums ranging from Rs 2.5 lakh to Rs 8 lakh, even in areas where market rates run into several crores. Low power tariffs and simplified approval mechanisms have further strengthened investor confidence.
The government has also introduced major reforms, including a single certificate of in-principle approval based on self-declaration to reduce procedural delays and support for revival of sick MSMEs by extending incentives similar to new units.
Under flagship central schemes, Jammu and Kashmir has continued to perform strongly. Under PM Gati Shakti, the UT ranks among the top five, while under the One District One Product (ODOP) initiative, it has secured the National Gold Award for the second consecutive year.
Under PMEGP, over 73,500 units have been established in the last five years, with Jammu and Kashmir ranking first for three consecutive years in employment generation and margin money utilisation.
Similarly, under PM Vishwakarma, the Union Territory has topped all Union Territories in registrations, skill training and loan disbursement, further strengthening its position as an emerging industrial and entrepreneurial hub.
