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Exploring the Informal Economy: Analysis of Unincorporated Enterprises in Jammu & Kashmir, India Jakhar, Babloo; Kumar, Vijay; Sharma, Sachin; Sharma, Swati
Danadyaksa: Post Modern Economy Journal Vol. 2 No. 2 (2025): Post Modern Economy Journal
Publisher : Yayasan Pendidikan Islam Bustanul Ulum Mojokerto

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.69965/danadyaksa.v2i2.115

Abstract

This paper aims to present a descriptive analysis of unincorporated non-agricultural enterprises (excluding construction) in the Jammu & Kashmir region, highlighting the unique dynamics of the informal sector in the area. Specifically, it seeks to address key research questions regarding the drivers of growth in this sector, the extent of its divergence from national trends, and its implications for local economic development. Through the use of unit-level data from the National Sample Survey Office (NSSO) for the period 2010-11 and 2015-16, the study provides a descriptive analysis that underscores the rapid growth of such enterprises in Jammu & Kashmir compared to the national level. The findings indicate that unincorporated enterprises in Jammu & Kashmir have grown at a significantly faster rate than the all-India average, driven by factors such as supportive local policies, increased entrepreneurial initiatives, and socio-economic conditions unique to the region. This expansion signifies a trend towards increased self-employment and diversified income sources for the local population. However, the growth of the informal sector in Jammu & Kashmir also reveals that the region's economy is still heavily reliant on this sector, in contrast to the overall contraction of the informal sector across India. This divergence points to a structural transformation gap between the Jammu & Kashmir region and the national economy, which warrants further investigation through policy analysis, sector-specific studies, and socio-economic evaluations to better understand the underlying causes and potential solutions. Understanding this gap is crucial for formulating policies aimed at fostering inclusive and sustainable economic development in the region.
FISCAL REALITIES UNVEILED: ASSESSING JAMMU AND KASHMIR’S ECONOMY POST-ARTICLE 370 ABROGATION Sharma, Sachin; Yadav, Sunil; Kumar, Vijay; Jakhar, Babloo
Journal of Indonesian Applied Economics Vol. 13 No. 1 (2025): February - June 2025
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.jiae.2025.013.01.6

Abstract

Purpose To assess the fiscal transformation of Jammu & Kashmir (J&K) after the abrogation of Article 370 and its reorganization in October 2019, with a focus on changes in resource mobilization and allocation. Design/methodology/approach A comparative analysis of secondary data (2015–16 to 2023–24) examining (a) central transfers as a share of GSDP, (b) own-tax revenue relative to GSDP, and (c) capital expenditure by the former state and through centrally sponsored schemes Findings Post‐2019, central transfers rose from 22% to 28% of GSDP, and own-tax revenue increased from 5% to 9%, indicating better fiscal capacity. Capital spending also rose significantly: state outlays grew from 5% to 11% and CSS spending from 2% to 7% of GSDP. Despite this, under-utilization of grants, particularly in health and education highlights governance and accountability gaps Research limitations/implications The use of secondary data limits understanding of sub-regional disparities and underlying inefficiencies. Future studies could include field surveys and interviews to explore institutional challenges. Originality/value This is one of the first empirical studies on J&K’s fiscal shifts post-reorganization, offering policy-relevant insights for improving transfer mechanisms and institutional capacity to support inclusive development.