On April 22, 2025, a cruel civilian attack by Pakistani militants shocked Jammu and Kashmir. Investor confidence wavered for a while, visitor attitude briefly declined, and temporary limitations were implemented, but the recovery was overwhelming. One year after the attack, J&K is creating an amazing tale of expansion, not just in tourists but also in startups, investments, and revenue.
Resurgence of tourism
At least 48 resorts and other tourist destinations in J&K were promptly closed after the Pahalgam incident. The government started Operation Sindoor two weeks after the attack. The Valley was once again distressed by Pakistan's retaliation. But after that, the tourists rejected any reluctance or dread. In 2025, around 1.7 crore tourists travelled to J&K despite the opposition.Although it was below the 2.4 crore level from the previous year, it was still more than the 1.1 crore level from 2021.Startup boom
Jammu and Kashmir is no longer solely known for its enormous tourism industry. Additionally, the Union Territory has developed as a center for startups. Additionally, women are carving out a unique niche for themselves in the startup community.According to the J&K Economic Survey 2025-26, "the startup ecosystem grew from 69 startups in 2020 to 1,255 startups by December 2025, including 434 women-led startups across agri-allied, IT, services, and manufacturing sectors."
The ambitious Jammu & Kashmir Startup Policy 2024-27, which aims to facilitate funding through venture capital funds, loan guarantee programs, seed funding, patent-related help, and mentorship aid, also supports J&K's startup ecosystem.Investments are pouring
Another gem in the crown is gaining the trust of investors. In just nine months of FY 2025–2026, J&K got investments totalling Rs 5,260 crore. This was 14 times the Rs 377 crore amount for the entire year 2021–2022. Additionally, there is a lengthy pipeline of suggested investments for central sector initiatives.According to the Economic Survey, the New Central Sector Scheme has drawn a planned investment of Rs 14,292 crore and is anticipated to create jobs for over 50,000 young people.
In 2025, J&K ranked fifth in terms of ease of doing business, earning it national distinction as well.

Growing Income Per Person
The Pahalgam incident affected revenue across all industries and enterprises, not just the tourism sector. In 2025–2026, however, the wealth of commoners increased. From Rs 1.55 lakh in 2024–2025 to Rs 1.68 lakh in 2025–2026, per capita income increased.
In FY25, J&K's per capita income was 75.7% of India's total, but in FY26, it increased to 76.5%.
Attacks like Pahalgam reawaken old wounds since Jammu & Kashmir has experienced terror, but today's resilience is deeper and rehabilitation happens more quickly than in the past.