Census Data, Literacy, and Employment Trends

The economic and structural metamorphosis of Jammu and Kashmir (J&K) into a Union Territory has necessitated a fundamental recalibration of its developmental metrics, making a granular understanding of its economic indicators indispensable for aspirants of the Jammu and Kashmir Services Selection Board (JKSSB). 

This research report provides an exhaustive examination of the Gross State Domestic Product (GSDP) trajectories, the demographic shifts captured by the decadal Census, and the evolving nuances of the labor market. By synthesizing data from the Economic Survey 2024-25, the projected Economic Survey 2025-26, and the National Family Health Survey (NFHS-5), this analysis delineates the progress and challenges inherent in the region’s quest for sustainable economic self-reliance.   

Macroeconomic Framework and Growth Trajectories

The macroeconomic health of Jammu and Kashmir is characterized by a transition from a traditional, consumption-heavy economy to an investment-led growth model. In the fiscal year 2024-25, the Union Territory demonstrated commendable economic performance, with the real GSDP projected to grow at 7.06 percent, while the nominal GSDP is anticipated to increase by 11.19 percent. This growth is not merely a post-pandemic rebound but reflects a structural shift facilitated by enhanced infrastructure and digital governance.   

GSDP Composition and Sectoral Dynamics

The size of the J&K economy, measured in terms of Nominal Gross State Domestic Product, is estimated to be approximately Rs. 2.65 lakh crore in 2024-25, with projections suggesting it will touch Rs. 2.86 lakh crore in 2025-26. The real GSDP for 2024-25 is estimated at Rs. 1.45 lakh crore, reflecting a compound annual growth rate (CAGR) of 4.89 percent from 2019-20 to 2024-25, which surpasses the 4.81 percent growth rate recorded in the preceding decade from 2011-12 to 2019-20.   

The following table illustrates the sectoral contribution to the Gross State Value Added (GSVA), highlighting the dominance of the tertiary sector and the stabilizing role of agriculture.

The tertiary sector remains the primary engine of the economy, although it is susceptible to regional security-related shocks and tourism fluctuations. A notable trend is the gradual expansion of the secondary sector, supported by industrial policy reforms and improved ease of doing business, where J&K has achieved a ‘Top Achiever’ ranking nationally.   

Per Capita Income and Standards of Living

Per capita income serves as a critical proxy for the standard of living and personal prosperity within the Union Territory. The Per Capita Net State Domestic Product (NSDP) at current prices is estimated to reach Rs. 1,54,703 in 2024-25, and further increase to Rs. 1,68,243 in 2025-26.   

A comparative analysis of J&K’s per capita income growth relative to neighboring northern states reveals a competitive trajectory. From 2019-20 to 2023-24, J&K’s per capita income grew at a CAGR of 8.3 percent, outperforming Punjab (6.22%), Delhi (6.74%), and Himachal Pradesh (6.0%). While J&K’s per capita income remains below the national average of Rs. 2,00,162, the gap is narrowing consistently, with incomes rising by nearly 170 percent between 2014-15 and 2025-26.   

Fiscal Management and Revenue Receipts

The fiscal architecture of J&K relies heavily on central assistance, but recent years have seen a surge in internal revenue mobilization. Total revenue receipts for 2025-26 are estimated at Rs. 90,529 crore. Of this, approximately 35 percent (Rs. 31,905 crore) is expected to be raised through the state’s own resources, while 65 percent (Rs. 58,624 crore) will be provided by the central government.   

The increase in power tariff collections, which witnessed a 16 percent rise in 2024-25, signifies a major step toward reducing the fiscal burden of the power sector and improving revenue buoyancy.   

Demographic Profile: Census 2011 and Contemporary Projections

For JKSSB aspirants, the 2011 Census remains the official benchmark for demographic data, as the 2021 Census was delayed. The population of Jammu and Kashmir is characterized by a high decadal growth rate and a unique urban-rural distribution that influences policy making and infrastructure planning.

Population Size and Density

According to the 2011 Census, the total population of Jammu and Kashmir stood at 12,541,302, representing approximately 1.04 percent of India’s total population. Projections for 2025 estimate the population to have reached 1.60 crore.   

The population density of 124 per Sq. Km is significantly lower than the national average of 382, placing J&K 8th among states/UTs in terms of thin density. This is primarily attributed to the vast mountainous regions of the Himalayas and the cold desert terrain in parts of the UT.   

Sex Ratio: General and Child Metrics

The sex ratio is a critical indicator of social development. In 2011, J&K recorded a sex ratio of 889 females per 1,000 males, which was lower than the national average of 943.   

The decline in the child sex ratio from 941 in 2001 to 862 in 2011 prompted the administration to launch several girl-child centric initiatives. However, NFHS-5 data shows a positive trend in the sex ratio at birth, which was 927 for children born in the five years preceding the survey.   

Religious and Social Composition

Jammu and Kashmir is a Muslim-majority region with a substantial Hindu minority and diverse smaller communities.

The Scheduled Tribe (ST) population accounts for approximately 11.91 percent of the total population, while Scheduled Castes (SC) represent 7.38 percent. Districts like Kargil (86.88% ST) and Samba (28.79% SC) show significant concentrations of these communities.   

Literacy and Education: Bridging the Gender Divide

Educational attainment in J&K has seen a steady rise, though disparities between urban and rural areas, as well as between genders, persist. The overall literacy rate increased from 55.52 percent in 2001 to 67.16 percent in 2011.   

Census 2011 Literacy Breakdown

The literacy statistics reflect the success of primary education initiatives while highlighting the need for focused adult literacy programs.

Leh district recorded the highest overall literacy rate at 80.48 percent, while Ramban and Bandipora were at the lower end of the spectrum. The gender gap in literacy stood at 20.32 percentage points in 2011, a slight improvement from 23.60 percentage points in 2001.   

Insights from NFHS-5 (2019-20)

National Family Health Survey data provides a more contemporary look at adult literacy (age 15-49).

• Literate Women: 69.0 percent (up from 53.9 percent in NFHS-4).   
• Literate Men: 87.0 percent (up from 78.1 percent in NFHS-4).   
• Years of Schooling: Only 33 percent of women have completed 12 or more years of schooling, compared with 46 percent of men.   
• School Attendance: 94 percent of children aged 6-17 years attend school (97% in urban areas and 94% in rural areas).   

The survey highlights a significant “never attended school” demographic—21 percent for women and 9 percent for men in the 15-49 age bracket. Programs like the New India Literacy Programme (NILP) are targeting this gap, with a goal of making 3.50 lakh adults literate in the current phase.   

Employment Trends and Labor Market Evolution

The labor market in Jammu and Kashmir is undergoing a structural shift. While agriculture remains the largest employer, the services and industrial sectors are increasingly absorbing the workforce, particularly through government-sponsored entrepreneurship missions.

Periodic Labour Force Survey (PLFS) Indicators

The latest PLFS reports for 2023-24 indicate a decline in the unemployment rate and an increase in labor participation.

The unemployment rate’s dip of 0.6 percentage points reflects enhanced economic dynamism and the operationalization of various self-employment schemes. However, youth unemployment, especially among the highly educated, remains a core concern, with nearly 71 percent of women and 27 percent of men in the 15-49 age group reported as not employed in the 12 months preceding the NFHS-5 survey.   

Employment by Sector (NFHS-5)

The distribution of the working population reveals the gendered nature of employment in the region.

Despite the lower formal employment figures for women, the administration is focusing on self-help groups (SHGs) and the “Umeed” scheme to foster micro-entrepreneurship at the grassroots level.   

Mission YUVA: A Paradigm Shift in Entrepreneurship

The Yuva Udyamita Vikas Abhiyan (Mission YUVA) is the centerpiece of the Union Territory’s strategy to tackle unemployment by fostering a culture of innovation and self-reliance. Launched as a flagship program, it aims to establish 1.37 lakh enterprises and generate 4.25 lakh jobs over the next five years.   

Core Components and Financial Architecture

Mission YUVA is structured to support entrepreneurs at various stages of their business journey, from nano-ventures to large MSMEs.

The NANO scheme provides collateral-free credit to the “poorest of the poor,” with a government subsidy of 25 percent for general youth and 30 percent for women and persons with disabilities. As of December 2025, J&K Bank has already sanctioned loans to 10,000 youth under this initiative.   

Operational Guidelines and Eligibility

Mission YUVA emphasizes inclusivity and transparency, requiring applicants to be domiciles of J&K aged 18 to 59 years.   

• First-Generation Preference: At least 75 percent of beneficiaries should be first-generation entrepreneurs who have not previously availed government self-employment schemes.   
• Digital Integration: Registration is facilitated through a hassle-free app devised by J&K Bank, involving the creation of a profile using Aadhaar and PAN details.   
• Exclusions: Businesses linked to intoxicant production (liquor, tobacco) or those with negative environmental impacts (plastic bags) are ineligible.   

Infrastructure and Regional Connectivity: Foundations for Growth

The acceleration of economic indicators in J&K is intimately linked to the massive infrastructure projects currently underway, aimed at providing all-weather connectivity and boosting tourism.

Major Road and Tunnel Projects

• Z-Morh Tunnel: A 6.5 km all-weather tunnel connecting Gagangir and Sonamarg in Ganderbal district, inaugurated in January 2025.   
• Zojila Tunnel: Aimed at providing all-year connectivity between Ladakh and Kashmir, crucial for both defense and trade.   
• Vailoo Singhpora Tunnel: A 10.3 km project connecting Kokernag (Anantnag) with Chatroo (Kishtwar), expected to revolutionize regional trade.   
• Pir Ki Gali Tunnel: Approved for the Poonch-Shopian stretch of the Mughal Road to ensure year-round operation.   

Railway and Air Connectivity

The Udhampur-Srinagar-Baramulla Rail Link (USBRL) is a generational project that includes the Chenab Bridge and the Anji Khad bridge (India’s first cable-stayed rail bridge in Reasi).   

• Jammu Rail Division: Inaugurated in 2025 as the 70th Railway Division of India.   
• Vande Bharat Express: Successful trial runs between Jammu and Srinagar mark a new era of high-speed regional travel.   
• International Travel: Direct flights between Srinagar and Dubai have been initiated, opening new avenues for MICE (Meetings, Incentives, Conferences, and Exhibitions) tourism.   

Governance and Institutional Performance: DGGI 4.0

The District Good Governance Index (DGGI) has become a vital tool for assessing the administrative efficiency of J&K’s 20 districts. By monitoring 58 indicators across 10 sectors, it fosters healthy competition and identifies areas requiring intervention.   

Top Performing Districts (DGGI 4.0, 2025)

The 2025 DGGI report highlights a mix of urban centers and developing rural districts as leaders in specific governance sectors.

Ramban district was ranked at the bottom of the DGGI 4.0 composite score, reflecting persistent challenges in infrastructure and literacy in high-altitude areas.   

Agriculture and Allied Sectors: The Rural Engine

Agriculture continues to employ the largest share of the workforce (43%) and serves as a vital safety net for the rural population. The Holistic Agriculture Development Plan (HADP) is the administration’s primary vehicle for doubling agricultural income.   

Key Agricultural Initiatives

• Milk Production: Target to increase production from 25 to 45 lakh metric tons through the establishment of 100 satellite heifer rearing units.   
• Horticulture Expansion: Significant growth in fresh fruit production, driven by high-density plantations and better farming techniques.   
• Sheep Husbandry: Import of 900 Dorper and Texel sheep from Australia to achieve self-sufficiency in mutton, which currently costs the UT Rs. 1,400 crore in annual imports.   
• Saffron and Walnuts: Pampore saffron’s GI tagging and J&K’s 75% share of India’s apple production are being leveraged for international exports.   

Social Welfare and Citizen-Centric Schemes

The 2025-26 Budget emphasizes “growth with social justice,” with an array of schemes aimed at the empowerment of women, the elderly, and the economically disadvantaged.

• Free Public Transport for Women: All women in J&K are granted free ridership on government-owned e-Buses from April 2025.   
• Energy Welfare: CM Omar Abdullah announced 200 units of free electricity for eligible consumers to mitigate the rising cost of living.   
• Health Saturation: 100% screening of the 30+ population for hypertension and diabetes, alongside the rollout of the e-SeHAT app for teleconsultation.   
• Beti Anmol Scheme: Provides scholarships of Rs. 5,000 for BPL girl students to encourage higher education.   

Strategic Insights for JKSSB Aspirants

Success in JKSSB examinations requires more than just memorization; it demands a nuanced understanding of the causal relationships between these indicators.

1. Macro-Economic Stability: The transition from a 4.81% to a 4.89% CAGR reflects a stabilizing economy that is less dependent on traditional volatility.   
2. The Urban-Rural Divide: While urban areas like Jammu and Srinagar lead in literacy and infrastructure, rural districts are the focus of high-density plantation and livestock missions.   
3. Entrepreneurship vs. Government Jobs: With a 300:1 applicant-to-seat ratio in some J&K Police recruitments, the government is signaling that Mission YUVA is the primary viable career path for the future.   
4. Governance Metrics: The DGGI is not just an index; it is a roadmap for administrative priorities. Aspirants should note that sectors like “Citizen Centric Governance” (where Reasi ranks 1st) are frequently highlighted in interview rounds.   

Conclusion

The data clusters presented in this report paint a picture of a Union Territory in the midst of a historic pivot. From the completion of the world’s highest rail bridge to the achievement of 100 percent tap water coverage in Ganderbal, the physical landscape is changing alongside the economic one. For the JKSSB aspirant, these economic indicators are the vital signs of a region striving for “Viksit Bharat” by 2047, where prosperity is balanced with ecology and equity. The consistent rise in per capita income and the operationalization of Mission YUVA provide a strong foundation for a more resilient and self-reliant Jammu and Kashmir in the years to come.  

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Sahil Digra

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