Jammu and Kashmir stands at a crucial juncture in its economic journey. Blessed with extraordinary natural resources, abundant water reserves, valuable mineral deposits, internationally recognised tourism destinations and immense human potential, the region possesses the foundations of a prosperous economy. Yet, despite these advantages, its financial structure remains substantially dependent upon assistance from the Government of India. This contradiction between enormous economic potential and continuing fiscal dependence raises fundamental questions about developmental priorities and the long-term economic future of Jammu and Kashmir.

The real challenge is not merely obtaining larger budgetary allocations but creating an economic structure capable of generating sustainable revenue, attracting private investment and providing productive employment. Financial prosperity cannot be measured by government expenditure alone. It must be reflected in economic productivity, industrial expansion, revenue generation and improved living standards.A considerable portion of Jammu and Kashmir’s public expenditure remains committed to salaries, pensions, administrative expenses, electricity procurement and debt servicing. These obligations restrict financial flexibility and reduce the resources available for fresh developmental investment. While Central assistance remains essential because of the region’s strategic importance, difficult geography and developmental challenges, long-term fiscal policy must progressively strengthen locally generated revenue.

Mining represents one of the most promising opportunities for transforming Jammu and Kashmir’s economic fortunes. The region possesses deposits of limestone, gypsum, coal, lignite, marble, granite, sapphire and other minerals. The discovery of lithium-bearing resources in the Reasi district has further highlighted its potential contribution to India’s emerging critical-minerals economy.

The Geological Survey of India’s identification of approximately 5.9 million tonnes of inferred lithium-bearing resources in the Salal-Haimna area attracted considerable national attention. Lithium is strategically important for electric vehicles, rechargeable batteries and energy-storage technologies. However, the reported figure represents an inferred mineral........

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