Seven years after the abrogation of Article 370, Jammu and Kashmir and Pakistan‑occupied Jammu and Kashmir present sharply contrasting trajectories.

The Indian Union Territory has witnessed economic growth and infrastructure expansion, while PoK continues to grapple with economic distress, political unrest and recurring protests.

According to the Comptroller and Auditor General Report on the Finances of the Union Territory for 2024‑25, Jammu and Kashmir has recorded steady economic progress over the past five years.

The Gross State Domestic Product increased from ₹1.68 lakh crore in 2020‑21 to ₹2.62 lakh crore in 2024‑25. Per capita income rose from ₹1.01 lakh to ₹1.55 lakh during the same period, reflecting a significant improvement in living standards.

The report highlights a notable rise in developmental spending. Expenditure on Economic Services increased from ₹14,842 crore in 2020‑21 to ₹23,257 crore in 2024‑25. Spending on Social Services rose from ₹21,964 crore to ₹28,234 crore. The combined share of social and economic sector expenditure reached 62 per cent of total expenditure in 2024‑25, underscoring a greater emphasis on development‑oriented sectors.

The CAG further noted that the ratio of total expenditure to Gross State Domestic Product declined from 37.66 per cent in 2020‑21 to 31.45 per cent in 2024‑25. This indicates that the region’s economy is becoming progressively less dependent on government spending as overall economic activity expands. Analysts have pointed out that this trend reflects a healthier fiscal balance and growing private sector participation in the Union Territory’s economy.

In contrast, Pakistan‑occupied Jammu and Kashmir is facing mounting socio‑economic challenges. The official unemployment rate stands at 11 per cent, while youth unemployment has reached 27 per cent. This has contributed to the migration of educated young people in search of opportunities abroad or in other parts of Pakistan. The lack of job creation has become a pressing concern for the region’s future stability.

Poverty remains a major issue. The official poverty rate is 12.65 per cent, but nearly 18.6 per cent of the rural population remains vulnerable to slipping below the poverty line due to continuing economic pressures. Rising inflation and stagnant wages have worsened the plight of ordinary families, leaving them increasingly dependent on remittances and informal labour.

The worsening economic situation has fuelled widespread public discontent. Residents have staged repeated protests against rising electricity tariffs, increasing food prices and what they describe as inadequate governance.

Demonstrations have often turned into territory‑wide shutdowns, long marches and civil disobedience campaigns. The Joint Awami Action Committee has been at the forefront of these movements, demanding subsidised wheat flour and a fair share of electricity generated from the region’s hydropower resources.

The region has also witnessed repeated allegations of human rights violations. Incidents of political unrest, targeted killings and abductions of political activists have added to concerns over governance and stability. Reports suggest that the administration has struggled to contain dissent, often resorting to heavy‑handed measures that further alienate the population.

Seven years after the constitutional changes of 2019, the two regions present a stark contrast. Jammu and Kashmir is marked by expanding infrastructure, rising developmental expenditure and economic growth.

Pakistan‑occupied Jammu and Kashmir continues to face economic hardship, political unrest and public protests. The divergence highlights the impact of governance, fiscal management and political stability on regional development trajectories.

ANI