Srinagar, Feb 3: Service sector mostly tourism has emerged as the biggest contributor to the State Gross Development Product (SGDP) of Jammu and Kashmir.
Jammu and Kashmir is among the 10 states and union territories where service sector’s contribution to SGDP is more than 58 per cent.
As per Economic Survey 2019-20 released by the union government, J&K ranked number eight with its service sector contributing 58.3 per cent to the state’s Gross State Value Added (GSVA).
GSVA is the measure of value of goods and services produced in an area, industry or sector of an economy. Service sector in the newly established union territory, according to the survey, has recorded 5.5 per cent average growth in the last five years.
Chandigarh ranked first as its service sector contributes 86.7 per cent to the GSVA. It is followed by Delhi (84.1 per cent), Andaman and Nicobar Islands (68.1 per cent), Karnataka (65.4 per cent), Manipur (65.1 per cent), Telangana (64.7 percent), Kerala (62.7 percent) and Bihar (62.1 percent).
J&K has surpassed Meghalaya, Maharashtra, West Bengal and other 21 other states where the service sector contribution ranges between 57 to 40 per cent of state’s GSVA.
According to preliminary loss assessment report by Kashmir Chamber of Commerce and Industries, service sector, including Tourism took the biggest cumulative hit losing Rs 9191 crore in first 120 days after abrogation of article 370 on August 5. The sector also witnessed a whopping 1, 40,500 job losses, the report added.
A report by CARE India, a non-profit organization, has revealed that the industrial and agriculture sector accounts for 28 per cent and 16 per cent respectively of the economic output.
The report also noted that manufacturing has a low share in economic output of the region, contributing around 10 per cent to the local economy, less than the national average of 18 per cent.
The report also pointed out that the factories in Jammu and Kashmir accounts for only 0.4 per cent of the total units in the country, as per the Annual Survey of Industries.
It also pointed out that the region has had an indifferent track record in terms of industrial entrepreneur memorandum (IEMs) intentions being filed and implemented
