 "Why Pahalgam? The economic growth, progress that make Pakistan edgy about Jammu and Kashmir")
Did Jammu and Kashmir’s booming tourism and economic growth make Pahalgam a target for last week’s terror attack? Data shows that businesses in the region saw a massive boom following the abrogation of Article 370 in 2019.
According to a report by the Economic Times, the tally of operational entities saw a threefold increase post-2019. As of March 2025, Jammu and Kashmir housed 8,168 ‘active’ or operational firms, an increase from 3,293 in 2020.
The region is currently ranked second-highest in terms of the number of operational companies among all the hilly states after Uttarakhand, which has 12,946 companies.
Although there are recent concerns about the short-term investment environment in Jammu and Kashmir, central government officials believe the region’s solid long-term growth potential—already a draw for many companies—remains strong and will keep supporting economic development.
Officials have attributed the central government’s push for investments in J&K and an overall drop in terrorism since 2019, barring the recent attack, to the boom in business in the region. However, there was a slight decline in the number of fresh companies that set up shop in J&K from 1,433 in FY24 to 1,380 in FY25.
A senior official told ET that the slowdown was due to an unusually high surge in FY23, describing the current situation as a period of “normalisation.” “The FY25 numbers are still well above the historical trend,” the official noted.
Impact Shorts
More ShortsThe government calculates the number of “active” companies by excluding those that have shut down, are undergoing liquidation, or are in the process of being deregistered from the total number incorporated. Jammu and Kashmir continues to offer various incentives to attract businesses, including capital investment assistance, interest subsidies on working capital loans, and GST-linked benefits.
At the same time, Kashmir experienced an unprecedented surge in tourism in 2024, with over 34.98 lakh visitors, marking a significant rebound from previous years. This influx was driven by improved security conditions, successful international events like the G20 Tourism Working Group meeting, and increased digital promotion of the region’s attractions. Notably, foreign tourist arrivals rose sharply from 1,614 in 2021 to over 43,000 in 2024.
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
