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 ongoing economic transformation.
According to official data accessed, the investment is over 13 times the average annual inflow recorded between 2014 and 2021, reflecting a sustained surge in industrial activity across the UT.
The data shows that the upward trend has remained consistent over recent years, with investments rising from Rs 2,153 crore in FY 2022–23 to Rs 3,389 crore in FY 2023–24 and Rs 4,145 crore in FY 2024–25, culminating in the current record.
For the first time, multiple anchor investments exceeding Rs 500 crore are being grounded in the region. As per the data, 312 industrial units involving a cumulative investment of Rs 7,864 crore have completed more than 50 percent of groundwork and are expected to begin production soon.
The conversion of investment proposals into functional units has also improved notably. Under the New Central Sector Scheme (NCSS), 88.6 percent of registered units have already commenced production. Over the past three years, incentives worth Rs 2,513 crore have been disbursed under various schemes, including NCSS, GST reimbursement, PMEGP and other programmes of the Industries and Commerce Department.
The MSME sector has seen significant formalisation, with Udyam registrations increasing from 0.24 lakh in 2021 to 6.16 lakh in FY 2025–26. The total number of registrations is expected to reach 7.1 lakh within the current financial year.
On ease of doing business, J&K has been ranked 5th nationally under the Business Reforms Action Plan (BRAP) 2024, based on independent stakeholder feedback. Reform implementation has improved from just 0.30 percent in 2016 to 100 percent compliance.
The data further shows that nearly 79 percent of over 8.11 lakh applications received through the single-window system have been approved, with 89 percent cleared within stipulated timelines, while rejection rates remain below 5 percent.
The startup ecosystem has also witnessed rapid expansion. A total of 1,305 startups have been registered with the J&K Entrepreneurship Development Institute (JKEDI) till FY 2025–26, compared to just 69 in 2020. Notably, 816 startups were registered in FY 2025–26 alone. The New Startup Policy 2024 is currently operational, with funding support extended to 25 startups and four incubators.
To enhance industrial competitiveness, the UT is offering highly subsidised industrial land at premiums ranging between Rs 2.5 lakh and Rs 8 lakh, even in areas where market rates run into several crores. This, coupled with low power tariffs, has created a cost-competitive environment for investors.
Key reforms include the introduction of a single certificate of in-principle approval based on self-declaration to reduce procedural delays, and the revival of sick MSMEs by extending incentives at par with new units under the existing policy framework and RBI guidelines.
The government has also introduced systemic measures such as the first MSME Health Clinic to support stressed units and signed an MoU with the National Stock Exchange to facilitate access to capital markets. The MSME Facilitation Council, Jammu, has received the MSEFC Excellence Award from the Government of India for effective dispute resolution.
J&K’s performance under flagship central schemes has further strengthened its position. Under PM Gati Shakti, the UT ranks among the top five, with 676 GIS layers integrated and 51 major infrastructure projects mapped with an outlay of Rs 5,000 crore.
Under the One District One Product (ODOP) initiative, J&K has secured the National Gold Award for the second consecutive year in 2024, reaffirmed in 2025, reflecting sustained progress in value-chain development and artisan support.
In the past five years, 73,524 units have been established under the Prime Minister’s Employment Generation Programme (PMEGP), with J&K ranking first for three consecutive years in both employment generation and margin money utilisation, while exceeding FY 2025–26 targets.
Similarly, under PM Vishwakarma, the UT has topped all Union Territories in registrations, skill training and loan disbursement.
