Impact of Pahalgam Terror Attack: Tourism Cancellations and Investment Concerns in Jammu & Kashmir:

The recent examination of travel and tourism in Jammu and Kashmir indicates that the terrorist attack in Pahalgam on the 22nd of April, 2023, additionally causing the loss of 26 civilian lives, has led to the cancellation of numerous trips scheduled during the summer period. It is bound to impact economic activities in the region and might stall investment momentum.

The Union Territory’s Compound Annual Growth Rate (CAGR), has consistently been on an upward trajectory since 2022, showing an to be 4.81%, vis-a-vis during 2011-12 and 2019-20. Additionally, there was a sharp rise at the start of the financial year with 9.31% in 2022-23.

Jammu & Kashmir records an estimated 7–8% contribution, give-or-take along with the gross state domestic product (GSDP), courtesy tourism. In my opinion, ongoing investments from businesses put on hold spell out the next single concern risking the GSDP.

Citing Exports growth and business investments postulating an increase across advertisement spendings, claims put forward by Moneycontrol resulting in tough conditions for achiving targets on average, consolidate the single statement that depends highly on the advancement made to achieve will lower the overall state domestic product.

Tourism and Construction Drive the Economy

The state’s economy has diversified through the years, and tourism is still an essential industry, providing a lot of jobs and sustaining the services sector. Both tertiary services contribute 61.70% to J&K’s Gross State Value Added (GSVA) and employs 31.31% of work forceIn J&K, berdamus sustainiuitlasessgh23654gjerhgzbfg34.

Services sub-sector: Construction Industry is one of the very incorporated within Secondary Sector. It accounts for 42.46% of value added in this sub-sector of construction and generates almost 15% of total employment which shows the pace of development that is taking place in the UT.

Per Capita Income Growth Outpaces National Average

The overall PCI of J&K grew at 148% and is estimated to reach ₹1.55 lakh by 2024-25. The proportion of PCI of J&K with respect to PCI of India improved from 71.9% to 77.3% showing the improvement in the living standards in the region.

It is anticipated that PCI in J&K would have increased by 10.6% in 2024-25, higher compare to the estimated growth of India which is 8.7%. Moreover, J&K also topped other northern states in the growth rate of PCI from 2019-20 to 2023-24 leaving others like Punja, Delhi, HP and Chandigarh behind.

Investment Inflows and Industrial Growth
J&K received investment proposals worth ₹1.63 lakh crore by December 2024, which could create employment for 5.9 lakh people. Since 2019, 1,984 units have been set up with an investment of ₹9,606 crore and are expected to create over 63,000 jobs.
The centre’s new central sector scheme (NCSS) launched in 2021 with an outlay of ₹28,400 crore is gaining traction. By September 2024, 971 projects worth ₹10,471 crore were approved, expected to create 51,897 jobs.
Investments in large scale industries over ₹500 crore also improved the local economy and positioned J&K as a growing investment hub.