MCQs on Economy of Jammu and Kashmir (With Answers)

J&K GK · 2026-10-21 · 8 min read

The economy of Jammu and Kashmir rests on horticulture, handicrafts, tourism and hydropower, and exam questions follow the same pattern: what the region is known for, which product has a GI tag, and which scheme or project does what. This page gives a short revision list and then 20 solved MCQs with explanations.

Quick revision list

  • Horticulture: J&K is India's largest producer of apples and walnuts, and almost all Indian saffron comes from the Kashmir Valley (Pulwama, Budgam, Srinagar and Kishtwar districts)
  • Handicrafts: Kani shawl (GI tag in 2008), Sozni embroidery, papier-mache, walnut wood carving and carpets
  • Tourism: Gulmarg, Pahalgam and Sonamarg for leisure and winter sports, and pilgrimages such as Amarnath and Vaishno Devi
  • Connectivity: the Banihal–Qazigund rail section opened in June 2013, and the Chenani–Nashri tunnel on NH-44 opened in 2017
  • Banking: J&K Bank was founded in 1938 and is headquartered in Srinagar
  • Schemes: Himayat provides skill training linked to placement for youth, and the Roshni Act of 2001 on state land was struck down by the High Court

How to revise

Group the facts by sector: crops, crafts, tourism, transport and finance. The hydroelectric projects list covers power, and the culture and handicrafts page covers crafts in more detail.

Agriculture and horticulture

Farming and horticulture employ a large share of people in J&K. Rice is the main food crop, followed by maize and wheat. The Valley's temperate climate suits apples, walnuts, almonds, pears and cherries. Sopore and Shopian are known for apples. Saffron is grown in Pampore in Pulwama district, and also in Budgam, Srinagar and Kishtwar. Basmati rice from R.S. Pura and rajma from Bhaderwah and Ramban have special local fame.

Handicrafts and industry

The craft sector includes pashmina shawls, Kani shawls, Sozni embroidery, papier-mâché, walnut wood carving and carpets. Many of them are sold abroad, and several have GI tags that protect their names. The Kashmir saffron GI tag was granted in 2020. Small industrial estates and agro-processing units add to the economy.

Tourism

Gulmarg, Pahalgam, Sonamarg, the Dal Lake and the Mughal gardens draw visitors in summer, and Gulmarg is known for winter sports. Religious tourism brings pilgrims to the Amarnath cave and the Vaishno Devi shrine. Tourism supports hotels, transport, craft sellers and guides, but it is sensitive to weather, security and road closures.

Power and connectivity

Hydropower is a major resource, with projects on the Chenab and Jhelum. The rail link from Jammu to the Valley has grown in stages, including the Banihal–Qazigund section in 2013, and tunnels such as the Chenani–Nashri tunnel (2017) improve road travel.

Banking and schemes

J&K Bank was founded in 1938 and has its headquarters in Srinagar. Government schemes include Himayat (skill training with placement) and the Roshni Act of 2001, which was declared unconstitutional by the High Court in 2020. The central schemes, such as MGNREGA and PM Awas Yojana, also run in the region.

Typical question types

  • Product and place: which area is known for which product
  • GI tag: which crafts or crops have a GI tag, and the year
  • Project and river: which hydropower plant is on which river
  • Scheme: what a named scheme does
  • Infrastructure: which tunnel or rail section opened in which year

Questions candidates ask

Which products have GI tags? Kashmir saffron, Kani shawl and Sozni embroidery are among the J&K products with GI tags.

Which crop is most linked with Pampore? Saffron.

When was J&K Bank founded? In 1938, and its headquarters are in Srinagar.

Which tunnel was opened in 2017? The Chenani–Nashri tunnel on NH 44.

One more point to remember

Link each fact to a place or a year. Pampore and saffron, Sopore and apples, Kanihama and Kani shawl, Salal and the Chenab. Associations stay in memory longer than isolated facts.

Study tip

Make a one-page map of J&K and write the main product beside each district. Review it every morning for a week.

Practise

Solve the MCQs below, then read the geography MCQs, browse the topic sets and try a Class-IV and MTS mock.

By Shivam · Written with AI assistance and fact-checked · Questions on this page are original · Editorial policy · Report an error

Practice questions

Q1. India's largest walnut-growing UT/State is:

  1. Jammu & Kashmir
  2. Himachal Pradesh
  3. Uttarakhand
  4. Arunachal Pradesh
Show answer

Jammu & Kashmir — J&K produces most of India's walnuts.

Q2. J&K is the largest producer of which fruit in India?

  1. Banana
  2. Orange
  3. Apple
  4. Mango
Show answer

Apple — Horticulture is a mainstay of the Valley's economy.

Q3. The old J&K scheme to give state land to occupants was called the:

  1. Umeed Act
  2. Roshni Act
  3. Aajeevika Act
  4. Himayat Act
Show answer

Roshni Act — The Roshni Act (2001) was later struck down by the High Court.

Q4. The Kashmir Valley accounts for most of India's:

  1. Coffee
  2. Saffron
  3. Tea
  4. Rubber
Show answer

Saffron — Almost all Indian saffron is from the Valley (and Kishtwar).

Q5. Rajma of Bhaderwah/Ramban is a:

  1. Oilseed
  2. Fruit
  3. Spice
  4. Locally famous kidney bean variety
Show answer

Locally famous kidney bean variety — It is a pulse crop.

Q6. The Gulmarg Gondola was set up for:

  1. Fishing
  2. Irrigation
  3. Tourism and winter sports access
  4. Transporting coal
Show answer

Tourism and winter sports access — It carries visitors up the Apharwat slopes.

Q7. Basmati rice of the Jammu region is associated with:

  1. Gulmarg
  2. Pahalgam
  3. Sonamarg
  4. R.S. Pura
Show answer

R.S. Pura — R.S. Pura basmati has a GI tag.

Q8. The GI tag of the Kani shawl was granted in:

  1. 2008
  2. 2020
  3. 2014
  4. 1998
Show answer

2008 — Kani shawl got a GI in 2008.

Q9. The Amarnath and Vaishno Devi yatras are examples of:

  1. Space tourism
  2. Eco-tourism alone
  3. Medical tourism
  4. Religious tourism
Show answer

Religious tourism — Pilgrimage tourism supports local livelihoods.

Q10. Himayat is a J&K scheme for:

  1. Hospitals
  2. Skill training and placement of youth
  3. Roads
  4. Housing
Show answer

Skill training and placement of youth — Himayat trains and places rural youth.

Q11. The first Indian product to receive a GI tag was:

  1. Darjeeling tea
  2. Basmati rice
  3. Kashmir Pashmina
  4. Mysore silk
Show answer

Darjeeling tea — Darjeeling tea was the first GI product (2004–05).

Q12. The J&K Bank was established in:

  1. 1952
  2. 1938
  3. 1969
  4. 1947
Show answer

1938 — It was founded by Maharaja Hari Singh.

Q13. The J&K Horticulture Produce Marketing and Processing Corporation is shortened to:

  1. JKSPDC
  2. JKHPMC
  3. JKTDC
  4. JKSSB
Show answer

JKHPMC — JKHPMC markets and processes fruit.

Q14. The Geographical Indications Registry is located in:

  1. Chennai
  2. Delhi
  3. Mumbai
  4. Srinagar
Show answer

Chennai — The GI Registry is in Chennai.

Q15. Kashmiri saffron received its GI tag in:

  1. 2020
  2. 2012
  3. 2016
  4. 2008
Show answer

2020 — Kashmir saffron was GI-tagged in 2020.

Q16. Which of these crafts of J&K has a GI tag?

  1. Chikankari
  2. Zardozi
  3. Sozni embroidery
  4. Phulkari
Show answer

Sozni embroidery — Kashmir Sozni embroidery is GI tagged.

Q17. The Banihal–Qazigund rail section was opened to traffic in:

  1. 2005
  2. 2013
  3. 2018
  4. 2009
Show answer

2013 — It was inaugurated in June 2013.

Q18. The Z-Morh (Sonamarg) tunnel connects Srinagar with:

  1. Gulmarg
  2. Katra
  3. Sonamarg
  4. Pahalgam
Show answer

Sonamarg — It gives all-weather access to Sonamarg.

Q19. The Jammu & Kashmir Bank is a:

  1. Private sector bank with the government as the largest shareholder
  2. Cooperative bank
  3. Foreign bank
  4. Public sector bank
Show answer

Private sector bank with the government as the largest shareholder — The UT government holds a majority stake.

Q20. The Geographical Indications of Goods Act was passed in:

  1. 1986
  2. 2005
  3. 2010
  4. 1999
Show answer

1999 — It came into force in 2003.

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