Srinagar, often called paradise on earth, is grappling with weakening traditional sectors like horticulture, tourism, and artisan trades following the 2019 dilution of Article 370. Ecological vulnerabilities, supply chain disruptions, and high unemployment have intensified economic fragility in the city. Governance shifts and capital-heavy development models are displacing local economies without providing sustainable alternatives.
Nestled in the Himalayan valley, Srinagar has long relied on its wetlands, lakes, and mountains for livelihoods in horticulture, tourism, and artisan crafts. However, unchecked urban expansion and sprawl have encroached on these natural sponges, amplifying flood risks and raising living costs, as noted in local reports on choked drains and wetland loss.
The dilution of Article 370 in August 2019 brought significant governance changes, including the end of statehood, communication blackouts, and curfews that disrupted economic activities. A study on women entrepreneurs in Srinagar and Ganderbal highlights how network restrictions and lockdowns hindered marketing of crafts and customer connections, stunting the private sector. As of March 2025, over 32,000 government posts remain vacant, with urban unemployment at 11.8%, youth at 32%, and women's at 53.6%.
Key sectors have suffered: horticulture, engaging over three million people regionally, saw slumping growth rates and broken supply chains post-abrogation. In 2025, landslides stranded more than 800 fruit trucks, causing losses exceeding ₹200 crore in days. Tourism, projected as a revival engine, stays seasonal and vulnerable, while artisan trades face raw material shortages, exploitative intermediaries, and low daily earnings of ₹250–300 for many women workers. These disruptions have even pushed marginalized and transgender communities toward sex work.
Capital-driven projects, like the smart city initiative, often prioritize infrastructure over local needs, squeezing out vendors and artisan spaces while removing green areas. For sustainable recovery, experts advocate ecological restoration, community-led tourism, institutional support for crafts including digital marketing and micro-finance, and empowered local governance to integrate traditional economies.
Without addressing these fault lines—ecological stress, policy neglect, and top-down development—Srinagar risks further fragility, as argued by urban planner Tikender Singh Panwar, former Deputy Mayor of Shimla.