Kashmir is experiencing a slow yet deeply consequential economic decline- one that cannot be attributed solely/ blindly to political sector disturbances, international conflicts/ instabilities, or external factors. While these factors have played a role to a certain extent, but a growing portion of the crisis is internally generated. Shifting social values, weakening work culture, lacking skills, luxurious living standards, declining self-reliance, and unsustainable consumption patterns have collectively undermined the region’s economic foundations.

Extravagance and Lifestyle Inflation

Two major factors have severely weakened the economic backbone of Kashmiri households: extravagant social customs and unsustainable lifestyle choices.
Lavish marriages- often involving multiple pre-wedding ceremonies, engagement parties, and extravagant receptions- have become socially normalized. Families frequently finance these events through loans or by selling productive assets (mostly agrarian lands), plunging themselves into long-term debt. What were once simple and dignified occasions have transformed into competitive displays of wealth, creating immense financial strain.
Rising inflation has further aggravated the economic crisis in Kashmir, placing additional pressure on already strained household budgets. Sharp increases in electricity tariffs, domestic and commercial gas prices, fuel costs, and the prices of essential commodities have significantly raised the cost of living. Basic day-to-day amenities that were once affordable are now becoming increasingly expensive, leaving little room for savings or financial stability. For middle- and lower-income families, stagnant wages coupled with escalating utility bills and essential expenses have intensified economic vulnerability, pushing many households into debt and financial insecurity.
Parallel to this is the rise of luxurious lifestyles marked by oversized houses, expensive interiors, multiple private vehicles, and status-driven consumption. These choices are increasingly disconnected from real income levels and living standards, widening the gap between earnings and expenditure. All this showoff has happened in the last 20-30 years where every Kashmiri is in race with the outside world where it tries to synchronize itself to luxurious lifestyle or having some luxurious vehicles.

Loss of Agricultural Land

To sustain extravagance and luxury construction, agricultural land is being a prime and easy target which is sold at an alarming rate. In many cases, remaining land is converted into residential or commercial buildings, drastically shrinking cultivable area. This trend poses a serious threat to Kashmir’s food security, particularly in vegetables and essential crops, increasing dependence on supplies from outside the region.
Agriculture- once the backbone of Kashmir’s economy- is steadily losing relevance due to land fragmentation/ high rate of consumption under settlements, declining profitability, rising input costs, and diminishing youth participation. The long-term implications of this shift are deeply concerning.
Some independent data show that a large amount of cultivable land has been converted to non-agricultural purposes- including residential settlements, commercial construction, roads, and other built-up areas. In one recent period (2015–18), Kashmir lost nearly 78,700 hectares of agricultural land to non-agricultural use.
Another Greater Kashmir update similarly noted that Kashmir has faced an alarming conversion of more than 6.5 lakh kanal of paddy fields to non-agricultural purposes within about a decade, posing a serious risk to food self-sufficiency and traditional farming.
Experts and local reports estimate that about 20% of agricultural land in the region has been converted for commercial or residential purposes over recent years due to rapid urbanization and unplanned construction.

Unplanned Housing Expansion and Ecological Stress

Luxury housing construction has assumed unsustainable proportions in Kashmir. Unlike many other states, the Valley has witnessed extensive horizontal expansion of settlements, consuming disproportionately large tracts of land. Houses are often far larger than required relative to family size, income levels, and actual needs.
Construction costs frequently exceed household earning capacity, diverting resources from education, healthcare, savings, and productive investment. This unchecked expansion also places immense pressure on land, water resources, and infrastructure, exceeding the region’s ecological carrying capacity.

Drain of Local Income Through External Labor and Remittances

A major yet often overlooked factor in Kashmir’s economic weakening is the massive outflow of money in the form of remittances earned by non-local laborers. It is estimated that five to six lakh external workers, primarily from Punjab, Bihar, and West Bengal, are engaged year-round in construction, masonry, carpentry, and other skilled and semi-skilled occupations (Saloons, Electricians, etc) across Kashmir.
Each worker earns approximately 2.5 to 4 lakh annually, resulting in a substantial drain of locally generated income. This money, instead of circulating within Kashmir’s economy, is transferred outside the region, weakening the local multiplier effect and limiting internal economic growth especially in middle class families.

Skill Deficit and Weak Work Culture

This dependence on external labor highlights a deeper structural issue: the lack of skill development and work culture among local youth. Unlike other states where people engage in long working hours and skill-based private employment, Kashmir largely operates within a restricted work culture- often limited to 10:00 a.m. to 4:00 p.m. This significantly reduces earning potential and productivity.
The local economy remains overwhelmingly dependent on government employment, while private-sector opportunities are scarce. In contrast, other states offer skill-based private jobs where individuals can earn 40,000–50,000 or more per month. In Kashmir, however, even highly educated individuals- PhD scholars and researchers- find themselves economically constrained outside government or academic sectors, often lacking the practical skills required to diversify income sources.

Educated Unemployment

Despite rising educational attainment, unemployment and underemployment have increased sharply. Universities continue to produce graduates, postgraduates, and doctoral scholars, but the economy fails to absorb them. This mismatch between education and employability has resulted in widespread frustration, delayed financial independence, and growing migration.
The resulting brain drain deprives Kashmir of its most productive human capital. While remittances provide short-term household support, the long-term loss of skills, innovation, and entrepreneurship weakens regional development.

Delayed Marriages

An increasingly visible yet under-discussed consequence of economic distress in Kashmir is the trend of late marriages, driven primarily by unemployment, job insecurity, costly marriage customs, and the absence of stable income or assets. For many young men and women, marriage is no longer delayed by choice but by compulsion. The inability to secure employment, accumulate savings, or meet the rising financial expectations associated with marriage has pushed the average age of marriage steadily upward.
Extravagant wedding practices, inflated social expectations, and the high cost of setting up a household have made marriage financially prohibitive. In a society where economic stability is seen as a prerequisite for marital responsibility, prolonged joblessness- particularly among educated youth-has translated into prolonged personal uncertainty and social stagnation.
A Ministry of Statistics and Programme Implementation (Youth in India 2022) survey found that Jammu & Kashmir had the highest proportion of youth (aged 15–29) who are unmarried in India, at about 29.1 %, compared to the national average of 25 %. Within this group, males tend to remain unmarried at slightly higher rates than females.
A local NGO survey identified that more than 50,000 girls across the Kashmir Valley have crossed the widely accepted “marriageable age” without being married, citing financial constraints and social rituals as key reasons.
Within that estimate, over 10,000 of these unmarried women were reported from Srinagar district alone, indicating a significant demographic shift at the city level.
Older Adult Marriage Status
According to the National Health and Family Survey (NHFS), among the broader adult population (ages 20–49) in J&K, 27 % of women and 35 % of men have never married- a substantial proportion suggesting late or deferred marriage.
The consequences of delayed marriages extend beyond individual hardship and have begun to manifest at a broader societal level. One notable outcome is a declining fertility rate, which carries long-term demographic implications. Medical experts have also cautioned that delayed parenthood may increase the risk of complications during pregnancy and childbirth, including higher chances of neonatal health issues-though outcomes vary widely and depend on multiple factors.
Late marriages have also been linked to rising marital stress, adjustment difficulties, and in some cases, higher vulnerability to marital discord and divorce. Economic pressure, emotional frustration, and prolonged dependency often strain relationships, sometimes escalating into domestic conflict. In such situations, both men and women suffer, and when children are involved, the impact becomes intergenerational-affecting emotional well-being, educational outcomes, and social stability.
Moreover, prolonged unemployment and delayed family formation have contributed to psychological distress among youth, including feelings of inadequacy, social isolation, and anxiety. These pressures, when left unaddressed, can manifest in unhealthy coping mechanisms and, in extreme cases, domestic violence or other social crimes- outcomes that further weaken the social fabric.
Delayed marriage, therefore, is not merely a personal or cultural issue; it is a direct outcome of economic imbalance, unemployment, and unsustainable social expectations. Addressing it requires economic reform, employment generation, moderation in marriage practices, and a collective rethinking of social norms that prioritize financial display over stability, compatibility, and well-being.

Uncertain Tourism

Tourism, one of Kashmir’s most vital economic sectors, remains extremely vulnerable to various uncertainties. Unfortunate incidents such as the Pahalgam attack in 2025 delivered a severe blow to the sector, pushing the regional economy to one of its lowest points in recent years.
The fallout was widespread- hoteliers, home-stay owners, shopkeepers, vendors, transporters, and small-scale businesses faced massive losses. Many families who had invested their life savings in tourism-related ventures were left with shattered dreams and mounting debts. Given Kashmir’s heavy dependence on tourism, such disruptions have far-reaching economic consequences.

Rising Costs, Stagnant Incomes, and the Normalization of Debt

As living costs rise and incomes stagnate, debt has become a survival mechanism. A household earning 20,000–30,000 per month often faces expenses exceeding 40,000–50,000. Loans are increasingly taken not for productive investment, but for consumption-driven expenses-weddings, housing, vehicles, and social obligations-eroding financial resilience.

Violation of Ethical and Religious Principles

Beyond economics, the current trajectory represents a departure from deeply rooted ethical and religious values. Islamic teachings emphasize simplicity, moderation, and avoidance of extravagance. The Qur’an clearly condemns wastefulness, stating that those who exceed limits are “brothers of Satan.” The Prophet Muhammad (peace be upon him) advocated simple marriages, modest living, and contentment over material excess, reminding believers that true wealth lies in inner satisfaction, not possessions.The widespread culture of extravagance today stands in stark contradiction to these principles.

The Human Cost of Economic Stress

The economic crisis has profound human consequences. Persistent financial pressure has contributed to rising anxiety, depression, lifestyle diseases, strained family relations, and declining quality of life. Despite increased material consumption, contentment and well-being have diminished.

The Way Forward

Kashmir’s recovery demands more than policy measures- it requires societal introspection especially with the support of religious leaders, local committees, etc. Skill development, revival of agriculture, promotion of compact and sustainable housing, encouragement of private enterprise, and restoration of dignity of labor are essential.
Equally important is a cultural shift toward simplicity, financial discipline, and productive work ethics- values deeply rooted in Kashmiri tradition and Islamic teachings. Without such reform, Kashmir risks further economic erosion, environmental stress, and social fragmentation.
The crisis facing Kashmir today is not merely economic; it is structural, cultural, and moral- and addressing it requires collective responsibility.

Email:-----------naseerevs@gmail.com