Jammu, Kashmir and Ladakh

The economies of Jammu and Kashmir and Ladakh - horticulture, handicrafts, tourism and government jobs - and how conflict and policy changes have affected them.

Jammu and Kashmir and Ladakh have distinct mountain economies.

Jammu and Kashmir

Horticulture: apples, walnuts, almonds and saffron.
Handicrafts: pashmina shawls, carpets and papier-mâché.
Tourism: Srinagar, Gulmarg and Pahalgam.
Government jobs: a large share of formal employment.

Effects of conflict

Decades of conflict reduced investment, tourism and business confidence.

2019 changes

In August 2019, Article 370 was revoked and the state was reorganised into two union territories: Jammu and Kashmir and Ladakh. The government said this would attract investment; critics raised concerns about rights and local consultation.

Tourism revival and shocks

Tourist arrivals rose to record levels in 2022-23, but the April 2025 attack on tourists in Pahalgam hurt tourism sharply.

Ladakh

Tourism in Leh.
Pashmina goats in Changthang.
Plans for large solar projects.
Local demands for constitutional safeguards over land and jobs.

The pashmina chain

Pashmina wool from goats in Ladakh's high plateau is spun and woven by artisans in Kashmir into fine shawls sold worldwide.

Thinking the region's economy is only tourism

Horticulture, handicrafts and government jobs are also major.

Key takeaways

J&K relies on horticulture, handicrafts, tourism and government jobs.
Conflict reduced investment and tourism.
Article 370 was revoked in 2019, creating two union territories.
Ladakh's economy includes tourism, pashmina and solar plans.