A year after the Pahalgam attack shook the region, Jammu and Kashmir has staged a notable recovery, marked by renewed momentum in investment, a growing startup ecosystem, and a steady revival in tourism, officials and industry stakeholders said.

The attack had dealt a blow to investor sentiment and tourist inflows, raising concerns over security and economic stability in the Union Territory. However, over the past year, authorities have stepped up confidence-building measures, strengthened security arrangements, and rolled out policy incentives aimed at restoring trust among businesses and visitors alike.

Government data and industry estimates suggest a rise in new investment proposals across sectors such as hospitality, infrastructure, and renewable energy. Officials said streamlined approval processes and targeted outreach to investors have contributed to improving the business climate. Several projects that were previously delayed have resumed, while fresh proposals are being evaluated under updated industrial policies.

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The startup ecosystem in the region has also shown signs of resilience, with a growing number of local entrepreneurs launching ventures in areas such as technology services, handicrafts, agri-business, and tourism-linked enterprises. Incubation centres and government-backed initiatives have played a role in supporting early-stage companies, while access to funding and mentorship has gradually improved.

Tourism, a key driver of the local economy, has witnessed a steady rebound, with increased footfall reported across major destinations including Pahalgam, Gulmarg, and Srinagar. Hoteliers and tour operators said bookings have risen compared to the period immediately following the attack, aided by improved connectivity, promotional campaigns, and perceptions of enhanced safety.

Officials maintained that while challenges remain, the past year has demonstrated the region’s capacity to recover from setbacks and rebuild economic activity. They emphasised that sustained focus on infrastructure, security, and policy support will be critical to maintaining growth momentum and ensuring long-term stability in Jammu and Kashmir’s investment and tourism landscape.

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