Bring Back the Buzz

Stark unemployment and MSME collapse in Kashmir demand urgent, data-driven strategies, rooted in local realities, responsive schemes, and targeted support for small enterprise and youth.

- Syed Arsalan Abid

Kashmir's economy can't afford to wait. The latest numbers paint a worrying picture, and they demand action.

As per the Baseline Survey Report 2024-25 under Mission YUVA, overall unemployment in Jammu and Kashmir is at 6.7 percent, almost double the national average of 3.5 percent.

Youth unemployment is even worse: 17.4 percent, compared to 10.2 percent across India. Women in working age face an alarming 53.6 percent unemployment rate in the region.

Some districts are hit harder than others. Rajouri has 9.3 percent joblessness, Anantnag 8.7 percent, while Jammu and Srinagar show 3.3 percent and 5.9 percent, respectively.

Things are just as tough for local businesses.

Micro, Small and Medium Enterprises (MSMEs), which drive much of the local economy, are shutting down.

Between mid-2020 and the end of 2024, 701 MSMEs closed shop in Jammu and Kashmir. National shutdowns are rising fast: from 6,222 in FY 2022 to 19,828 in FY 2024, with an estimated 35,567 expected in FY 2025.

Beyond businesses, MSMEs in Kashmir provide crucial jobs and keep local crafts and trades alive, especially in handicrafts, food processing, and horticulture.

Take apples, for example. This one industry alone supports 3.5 million people, makes up around 10 percent of Kashmir's total economy, and produces 75 percent of India's apples.