In his first address to the newly elected Assembly, the Lieutenant Governor laid out a vision anchored in Economy, Ecology, and Equity.
In a landmark address marking the commencement of the Budget Session of the Legislative Assembly, the Lieutenant Governor of Jammu and Kashmir laid out a sweeping vision for the Union Territory, defining the past year as a pivotal moment in the region’s history. Addressing the House on Monday, the LG emphasized that the restoration of an elected government has bridged the gap between the administration and the people, fostering a new era of “participatory governance.”
The address, which spanned the entirety of the administration’s roadmap, was anchored in the foundational principles of “Economy, Ecology, and Equity.” With the Union Territory recording an 11 percent nominal growth rate for the 2024-25 fiscal year and GST revenues climbing steadily, the government projected an image of a region emerging from volatility into a period of structural stability and rapid development.
A Return to Democratic Roots
The opening of the speech set a poignant tone regarding the political landscape of the region. Acknowledging the vacuum of the previous years, the LG termed the formation of the new government as a restoration of public faith.
“The past year marks a significant milestone in the democratic journey of Jammu and Kashmir with the formation of an elected Government after a gap of several years,” the LG stated, addressing the Members. “This transition to popular governance has strengthened public faith in democratic institutions.”
The administration’s focus has reportedly shifted toward ensuring that “the voice of every region and community finds expression in policy making,” a move aimed at decentralizing power and ensuring that governance is not just an administrative exercise but a responsive mechanism. The establishment of grievance redressal systems, including the JK Samadhan portal, was highlighted as a key driver in resolving thousands of citizen issues, effectively taking governance to the doorstep of the common man.
11% Growth and Fiscal Discipline
At the heart of the address was the economic resurgence of the Union Territory. defying national and global headwinds, J&K is currently one of the fastest-growing regions in the country. The LG revealed that the economy is recording an annual nominal growth rate of around 11 percent for the current fiscal year.
This growth is being fueled by better tax compliance and fiscal management. GST revenue collection has seen a steady rise from ₹8,064 crore in 2023-24 to ₹8,586 crore in 2024-25. Furthermore, the turnaround of the Jammu and Kashmir Bank was cited as a major success story of professionalization and meritocracy.
“With support of UT Government, Jammu and Kashmir Bank has undertaken various reforms for professionalization of management, meritocratic selection of top posts and capital infusion,” the LG noted, pointing to the improvement in net NPA and capital adequacy as proof of the financial institution’s renewed health.
To further capital investment, the Centre has extended the ‘Special Assistance to States for Capital Infusion’ (SASCI) to J&K. Under this, ₹1,431 crore has been sanctioned for 222 projects, providing the necessary liquidity to keep the development engine running without stalling due to fiscal constraints.
Infrastructure
Perhaps the most visible transformation cited in the speech is the unprecedented infrastructure push, particularly in the road and rail sectors. The geography of Jammu and Kashmir, often a barrier to development, is being tamed through a massive investment of ₹61,528 crore in the road sector alone.
The administration is nearing the completion of strategic projects that promise year-round connectivity. While three major tunnels, including the Sonamarg Tunnel, are already operational, eight others—most notably the strategic Zojila Tunnel—are in advanced stages. This tunnel is critical for maintaining an all-weather link between the Kashmir Valley and Ladakh.
“The Narbal–Shopian–Surankote road has been declared a National Highway, further strengthening all-weather connectivity across the Pir Panjal region,” the LG announced. looking ahead to 2025-26, another 19 National Highway projects worth ₹10,637 crore have been sanctioned to decongest urban centers.
In a historic development for logistics and trade, the railway network has finally integrated the Kashmir Valley with the rest of India. The operationalization of the first-ever FCI food-grain freight train was highlighted as a game-changer, reducing reliance on the often-fragile National Highway 44.
“In a historic milestone, the Kashmir Valley has been connected with the rest of the country through the railway network, opening new avenues for trade, tourism, and economic progress,” the LG said.
Hydro and Solar Shifts
The power sector, historically a pain point for the administration due to high transmission losses and winter shortages, is undergoing a “structural transformation.” The government is aggressively pursuing a dual strategy of capacity addition and loss reduction.
Four major hydropower projects—Pakal Dul, Kiru, Kwar, and Ratle—are under active execution with a combined capacity of 3,014 MW. Simultaneously, the installation of smart prepaid meters has begun to yield results, with losses reduced by 9 percent and revenue realization up by 16 percent.
Addressing the renewable energy transition, the LG highlighted the PM Surya Ghar Muft Bijli Yojana. “Over 6,700 government buildings and more than 16,800 households have been solarised, reducing electricity costs and enhancing energy security,” the LG reported.
Furthermore, in a move to support the most vulnerable, the government has secured approval to provide 200 free units of electricity to 2.23 lakh Antyodaya Anna Yojana (AAY) families, a significant welfare measure for the poor.
Agriculture 2.0
Agriculture, the backbone of J&K’s rural economy, is being revitalized through the Holistic Agriculture Development Programme (HADP). The government is moving farmers away from subsistence farming toward high-value, diversified enterprises.
The results are already visible in specific sectors. The region is witnessing a “Yellow Revolution” with oilseed cultivation areas expanding from 1.4 lakh hectares to 2.1 lakh hectares. Similarly, honey production has surged, placing J&K among the country’s leading producers.
“Crop diversification has gained strong momentum… The Seed Replacement Rate (SRR) has improved from 12 percent to 22 percent, enhancing productivity and resilience,” the LG stated.
To support this, the government has strengthened the cold chain infrastructure. Controlled Atmosphere (CA) storage capacity has risen to 3.07 lakh metric tonnes, ensuring that produce like apples can be stored and sold when market prices are favorable. The integration of local mandis with the national e-NAM platform has already facilitated trade worth over ₹1,680 crore, connecting Kashmiri farmers directly with buyers across India.
Tourism
Tourism in J&K has shown remarkable resilience, recording 1.78 crore visits in 2025 despite security challenges. The government has now accorded “industry status” to the sector, a long-pending demand that will unlock investments and fiscal incentives.
The strategy now is to break the seasonality of Kashmir tourism. While the Tulip Garden is the icon of spring, the administration has launched the “Bagh-e-Gul-e-Dawood” (Chrysanthemum Garden) to attract tourists in the autumn lean season.
“Just as the Tulip Garden defines our spring, Bagh-e-Gul-e-Dawood is set to become the definitive icon of our autumn, inviting the world to witness the beauty of Kashmir during the Autumn Season,” the LG remarked.
Additionally, the government is diversifying the portfolio to include border tourism, eco-tourism in tribal areas, and international sporting events. The Kashmir Marathon, which attracted athletes from 11 countries in 2025, and the upcoming Jammu Marathon in March 2026, are positioning the UT as a wellness and sports destination.
Social Welfare
A significant portion of the address was dedicated to social security, reflecting the “Equity” pillar of the government’s philosophy. The administration has enhanced monthly pensions for the elderly, widows, and the disabled, with rates reaching ₹2,000 per month for those over 80 years old starting April 2025.
Housing for the poor has also seen rapid progress. “3.21 lakh houses have been constructed under the Pradhan Mantri Awas Yojana Gramin and work on remaining 14,000 is under progress,” the LG confirmed, adding that land is being provided to landless beneficiaries.
In a move aimed at empowering women, the government has introduced free public transport for women, enhancing mobility and safety. “This initiative has significantly improved urban mobility, reduced transportation costs for families, and encouraged greater use of public transport,” the LG noted.
Healthcare and Education
The health infrastructure is being overhauled with the establishment of AIIMS in both Jammu and Kashmir. The LG announced that AIIMS Kashmir is likely to be completed shortly. The region has added 548 new medical seats in the current year, boosting both education and future healthcare delivery.
Critically, the government is preparing for future health crises by constructing 17 Critical Care Blocks under PM-ABHIM, adding 950 specialized beds.
In education, the focus is on modernization. Over 4,000 smart classrooms are being set up, and the digitisation of student records via DigiLocker is nearly complete for senior classes.
Mission YUVA
Addressing the critical issue of unemployment, the LG detailed “Mission YUVA,” a comprehensive program designed to turn job seekers into job creators. The mission aims to establish 1.35 lakh entrepreneurial units.
“Of these, over 61,900 applied under credit-linked schemes, with more than 12,000 cases sanctioned, involving loans exceeding ₹800 crore,” the LG said, highlighting the appetite for entrepreneurship among the youth.
Simultaneously, the government is filling public sector vacancies, with 7,650 posts filled in 2025 and recruitment for another 23,800 currently underway. The administration also noted the compassionate appointment of 464 Next of Kin of terror-affected families, ensuring dignity for victims of violence.
Concluding the address, the Lieutenant Governor called upon the Members of the Legislative Assembly to rise above partisan lines and work for the collective good of the region. The speech painted a picture of a Jammu and Kashmir that is transitioning from a troubled past to a future defined by robust economic metrics, modern infrastructure, and social justice.
“Let us move forward with unity of purpose, transform challenges into opportunities, and collectively strive to build a Jammu and Kashmir that is peaceful, progressive, inclusive, and prosperous,” the LG urged.
As the Budget Session commences, the roadmap presented by the LG offers a blend of ambitious infrastructure goals and welfare-heavy policies, setting the stage for a critical year of governance in the newly elected Union Territory.
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