Srinagar Economy Faces Ecological and Growth Challenges

Srinagar, the summer capital of Jammu and Kashmir, is experiencing severe ecological stress and economic fragility in 2025. The city’s traditional livelihoods are under threat from urban sprawl, disrupted supply chains, and governance changes after the dilution of Article 370 in 2019. These factors have combined to weaken horticulture, tourism, and artisan trades, creating a complex crisis.

Ecological Fragility of Srinagar

Srinagar lies in a Himalayan valley with wetlands, lakes, and mountains vital to its ecology. These natural features support horticulture, tourism, and crafts. However, unchecked urban expansion has encroached on wetlands and blocked drainage systems. This increases flood risk and infrastructure stress. Loss of natural sponges worsens flooding and raises living costs. The ecological base that sustained Srinagar’s economy is now compromised.

Impact of Article 370 Dilution

The removal of Jammu and Kashmir’s special status led to governance disruptions. Communication blackouts, curfews, and loss of statehood affected daily life and economic institutions. Women entrepreneurs in crafts faced marketing and connectivity challenges. Government vacancies remain high, and unemployment is severe—11.8% in urban areas, 32% among youth, and 53.6% for women. The collapse of tourism, horticulture, and artisan sectors reflects these disturbances.

Economic Sector Breakdown

Tourism, once a key economic driver, suffers from seasonality and climate risks. Landslides and highway closures in 2025 stranded fruit trucks causing losses over ₹200 crore. Horticulture’s GDP share declined due to supply chain failures and policy neglect. Artisan trades face exploitation, raw material shortages, and market access issues. Many informal workers earn very low wages. Economic hardship has pushed some marginalised groups into sex work.

Limitations of Metropolitan Capital Infusion

Growth models based on large capital investments ignore local needs. Srinagar’s smart city initiatives often remove green spaces and displace artisans. This superficial development harms traditional livelihoods and ecological health. Without local economic anchoring, metropolitan investment risks worsening fragility. Sustainable growth requires balancing modern infrastructure with preservation of crafts and ecology.

Paths to Sustainable Growth

Horticulture needs cold-chain facilities, climate-resilient crops, and farmer cooperatives. Urban planning must protect wetlands and floodplains. Tourism should focus on community-led, heritage-based models involving artisans and locals. Artisan industries require design support, digital marketing, micro-finance, and protection of workshop spaces. Street vendors and informal markets need legal recognition and support. Restoring local governance and ensuring connectivity are crucial for revival.

Building a Balanced Economic Base

Srinagar’s future depends on integrating horticulture, artisanship, small manufacturing, niche tourism, and services. Over three million people are involved in horticulture alone. Tourism resilience can improve through digital outreach, homestays, and off-season activities. Job creation must include informal economy upgrades and village-town linkages. Social protection and vocational training can help vulnerable groups diversify livelihoods.

Governance and Social Inclusion

Effective local governance is essential to empower women entrepreneurs, artisans, and farmers. Reliable communication, marketing platforms, and skill development are needed. Addressing unemployment and marginalisation requires coordinated social policies. Top-down capital flows without local input deepen alienation. Sustainable development must be rooted in local voices and ecological care.

Questions for UPSC:

1. Taking example of Srinagar, discuss the challenges of balancing urban development and ecological conservation in Himalayan cities.
2. Examine the impact of political changes such as the dilution of Article 370 on regional economies and social structures in Jammu and Kashmir.
3. Analyse the role of traditional livelihoods like horticulture and handicrafts in sustaining local economies and cultural identity in conflict-affected regions.
4. Discuss in the light of Srinagar’s experience, how metropolitan capital infusion models can fail without inclusive governance and ecological considerations.

Answer Hints:

1. Taking example of Srinagar, discuss the challenges of balancing urban development and ecological conservation in Himalayan cities.

1. Srinagar’s ecology depends on wetlands, lakes, and mountain ecosystems that regulate floods and support livelihoods.
2. Unchecked urban sprawl encroaches on wetlands, blocks drainage, and increases flood risks and infrastructure stress.
3. Loss of natural sponges and green spaces raises living costs and damages horticulture and tourism sectors.
4. Balancing infrastructure growth with ecological protection is difficult due to competing demands and weak governance.
5. Urban expansion often leads to habitat loss, biodiversity decline, and increased vulnerability to climate events.
6. Sustainable urban planning must integrate green infrastructure, protect floodplains, and preserve ecosystem services.

2. Examine the impact of political changes such as the dilution of Article 370 on regional economies and social structures in Jammu and Kashmir.

1. Dilution of Article 370 led to loss of statehood, prolonged communication blackouts, and governance disruptions.
2. Economic institutions and daily life were severely affected, disrupting supply chains and market access.
3. High unemployment rates emerged – urban (11.8%), youth (32%), women (53.6%), reflecting economic distress.
4. Women entrepreneurs and artisans faced marketing and connectivity challenges due to communication restrictions.
5. Collapse of key sectors—tourism, horticulture, artisan trades—exacerbated economic fragility.
6. Social marginalization increased, pushing vulnerable groups into informal and exploitative livelihoods.

3. Analyse the role of traditional livelihoods like horticulture and handicrafts in sustaining local economies and cultural identity in conflict-affected regions.

1. Horticulture engages over three million people in Kashmir, forming the backbone of rural-urban economic links.
2. Handicrafts preserve cultural heritage through weaving, shawl-making, woodcraft, papier-mâché, and brassware.
3. Traditional livelihoods provide employment, especially for women and marginalized communities.
4. These sectors are vulnerable to supply chain disruptions, raw material shortages, and market access issues.
5. Supporting these livelihoods sustains cultural identity and social cohesion amid conflict and economic shocks.
6. Institutional support, design assistance, digital marketing, and micro-finance are critical for their revival.

4. Discuss in the light of Srinagar’s experience, how metropolitan capital infusion models can fail without inclusive governance and ecological considerations.

1. Capital infusion often prioritizes real estate and infrastructure over local livelihoods and ecological health.
2. Srinagar’s smart city projects squeezed out artisans, removed green spaces, and disrupted traditional economies.
3. Weak local governance leads to top-down development that ignores community needs and ecological fragility.
4. Without protecting artisan quarters and ecological assets, growth increases social and environmental vulnerabilities.
5. Inclusive governance ensures local voices guide development, balancing capital inflows with sustainability.
6. Sustainable growth requires integrating traditional sectors, ecological protection, and community-led planning.