Train to Kashmir: How the region’s first rail link with the rest of India will impact its key sectors

Indian Railways has said that a Vande Bharat Sleeper train will be launched on the track in January, covering over 800 kilometres and connecting New Delhi to Srinagar.

Until now, the only rail connectivity in the region was an internal line inaugurated in 2009, connecting Banihal in the Jammu division with Baramulla in North Kashmir. The new line will not only link Kashmir to Kanyakumari but also ensure all-weather access, slashing travel time between Srinagar and Jammu to just five hours.

Nearly eight decades since Jammu and Kashmir’s accession to India, road connectivity between the Valley and the rest of the country remains less than ideal because of the terrain and weather. The Srinagar-Jammu National Highway, the crucial and only road link between Kashmir and the rest of the world, is frequently closed due to landslides and mudslides, which are often triggered by inclement weather.

The 272-kilometre-long NH-1A highway has become a deathtrap, with frequent accidents along its treacherous, steep, hilly terrain and through its tunnels, resulting in numerous fatalities. The highway has also been closed for 223 days since 2019, according to an RTI reply by the J&K Traffic Police. The closure has resulted in a loss of 5,413 travel hours, disrupting trade and impacting the daily lives of commuters, including students, workers and patients.

The new link will come as a shot in the arm for the region’s key sectors such as tourism, handicrafts and horticulture. However, some entrepreneurs, particularly in Jammu, fear they will suffer a loss of business due to the direct connectivity to other parts of India. Activists, meanwhile, are fretting over the ecological toll the construction has taken on the environment.

National project

The ₹41,119 crore USBRL project, which was declared a “national project” in 2002-03, has been completed in phases. The first phase, the 118-km Qazigund-Baramulla section, was commissioned in October 2009, followed by the 18-km Banihal-Qazigund stretch in June 2013, and the 25-km Udhampur-Katra section in July 2014. The final 111-km Katra-Banihal stretch, the most challenging, was completed in December 2024.

Rail authorities say that the rail link, one of the most challenging projects undertaken by Indian Railways, includes 38 tunnels. It features Tunnel T-49, the country’s longest transportation tunnel (12.75 km), and 927 bridges. It also features the world’s highest railway bridge (the Chenab bridge) and India’s first cable-stayed railway bridge (Anji Khad bridge).

Deepak Kumar, chief public relations officer of Northern Railway, the executing authority, toldMint that the new train service will not only offer a smooth travel experience for those visiting the Kashmir Valley but also provide breathtaking views.

Healthcare boost

For hundreds of students, entrepreneurs, professionals and employees who work in other parts of the country, the line will make travel affordable and convenient. Patients seeking treatment will also have it easier.

Dr Parvaiz Koul, former director of the Sher-I-Kashmir Institute of Medical Sciences (SKIMS), told Mint that while a wide range of treatments is available in the Valley, patients who prefer to travel to Delhi, Mumbai, or Chennai for medical care can now take the train instead of spending a huge sum on an air ticket.

Similarly, hospitals that rely on timely delivery of medical equipment, supplies, and emergency tools will no longer be at the mercy of the highway. Dr Parvez Sofi, who heads Cygnus Hospital, a private healthcare institution in Srinagar, explained that hospitals will now be able to receive their medical materials on time and also be able to procure them at affordable rates.

Impact on tourism

Kashmir, which is known as a “paradise on earth,” is a popular destination for tourists from around the world, attracting millions each year to its breathtaking natural beauty, picturesque landscapes, and snow-capped mountains.

Government data shows that in 2024, Kashmir welcomed a record 2.95 million tourists, up from 2.71 million in 2023 and 2.67 million in 2022. The numbers further soar when tourist arrivals in Jammu are accounted for (23.5 million in 2024).

With the launch of the train service, low-budget domestic tourists will find it easier to visit, lifting the tourism industry, which already contributes ₹8,000 crore—nearly 7%—to the region’s gross domestic product.

Rauf Tramboo, president of the Travel Agents Association of Kashmir (TAAK), told Mint that the train service will give a fillip to the Valley’s tourism industry. “The rail service will not only increase the domestic tourist footfall, it will also address the issue of skyrocketing airfares, especially during the peak season.”

High airfares have been a common issue during the summer in Kashmir, making air travel a luxury even for middle-class tourists. For example, last March, a return air ticket from Delhi to Srinagar was priced between ₹20,000 and ₹22,000. In contrast, international holiday destinations such as the UAE, Thailand and Malaysia were more affordable, with return tickets costing ₹18,000 per person.

Tramboo said that high airfares have deterred many from visiting Kashmir, forcing them to choose other destinations. “With the introduction of the train service, Kashmir can now welcome tourists year-round at an affordable travel cost. Even winter tourism, which is usually affected by roadblocks caused by landslides, snow, and fog, will thrive, as the train service will remain operational despite weather challenges.”

Winter tourism, particularly in Gulmarg, is expected to thrive, with more visitors enjoying snow-related activities such as skiing, ice hockey, cross-country skiing, and snowboarding. The hotel industry, homestays, and houseboat operations are also expected to witness a surge in business.

According to Mushtaq Chaya, chairman of the J&K Hoteliers Club, the train service will transform Kashmir into a commercial hub. Chaya explained that while a flight could accommodate only 250 tourists, a train can carry many more. “It will be fantastic to see our hotels,homestays, houseboats, and shikaras packed with visitors, offering great experiences for tourists. We are already witnessing a surge in the number of hotels and restaurants in the Valley, which is a positive sign for our economy,” he added.

Farm sector

Every year, Kashmir, known for its diverse range of crops, including saffron, apples, cherries, plums, walnuts, and grapes, ships its produce throughout the country. For farmers, particularly apple growers, the opening of the line will come as sweet news.

Currently, farmers ship their produce by road, incurring high costs and facing the very real risk of their produce going bad due to highway closures. For instance, in September 2022, fruit growers in Kashmir faced losses of ₹1,500 crore after approximately 7,000 trucks carrying nearly 700,000 apple boxes were stranded on the Srinagar-Jammu National Highway for a week due to restrictions on movement.

Bashir Ahmad Bashir, president of the Kashmir fruit and vegetable growers association, said that the new rail connections will save time and money, allowing fresh fruits to be dispatched without any hindrance.

Fayaz Ahmad, president of the Fruit Mandi in Sopore, Asia’s second-largest fruit market, toldMint that previously, it would take two-three days for a truck loaded with fruits to reach the fruit mandi in Delhi. However, if there is seamless connectivity with the new train service, fruits will reach the national capital in just 13 hours.

Similarly, Haji Bahadur Khan, president of the Dry Fruit Association–Kashmir, said that transportation issues have also long plagued the industry, preventing walnuts and almonds produced in the Valley from reaching the country’s dry fruit markets on time.

Kashmir-based economist Nisar Ali said that the introduction of the train service will have a huge impact on the horticulture sector, which employs 3.5 million people and contributes 9.5% of J&K’s GSDP. “Growers will be able to transport their crops at the peak of the season and at the right time, which will help eliminate transport bottlenecks on highways,” he said.

However, Shahid Kamili, president, Federation Chambers of Industries Kashmir (FCIK) said that it is also essential to tap the new link to ensure an adequate supply of raw materials for industries. “We are at the fag end of the country, and for the train service to truly benefit industries here, it is crucial that raw materials can be shipped easily,” he explained.

“The railway authorities should establish rail stockyards in Anantnag (South), Srinagar (Central Kashmir) and Baramulla (North) to ensure that industries receive raw materials on time and at affordable rates,” Kamili added. “Currently, frequent road blockages result in delays of weeks for delivery of raw materials from outside states.”

Traders in the Valley also expect the rail service to ensure a better supply of fresh vegetables, fruits, and other products from the rest of the country at lower prices. For example, Bashir said that every winter, frequent closures of the Srinagar-Jammu Highway lead to a sharp rise in vegetable prices and other essentials in the region.

Handicrafts and local industries

Kashmir is famous world over for its exquisite handicraft products, including carpets, shawls, wood carvings, chain-stitch items, papier-mâché, crewel (wool embroidery) and namdha (handmade rugs).

According to Nisar Ali, demand for handicrafts is expected to rise once the rail service begins, as people who previously had difficulty reaching Kashmiri artisans for authentic handmade items will now be able to easily visit and purchase them.

Official data states that around 300,000 artisans in Kashmir rely directly on handicrafts for their livelihood. Currently, the region’s handicraft sector generates approximately ₹1,200 crore annually in foreign exchange. The J&K government has targeted annual handicraft exports of ₹3,000 crore by 2029, and the train service is expected to help achieve this goal.

Kamili said that with the introduction of the train service, the labour shortage that industries have been grappling with—affecting up to 75% of their workforce—could be alleviated as labourers from outside Kashmir can now quickly and affordably travel to Kashmir for work.

Logistics and courier companies will also benefit as delivery could get quicker and cheaper. Samiullah, co-founder and chief executive of Kashmir’s logistics startup FastBeetle Logistics Pvt. Ltd, a J&K-based tech startup focused on last-mile logistics, said the rail service will help local startups thrive, leading to increased employment opportunities and economic growth.

Challenges

Many in the Valley hope the rail service will spur an economic boom, but their optimism is tempered by fears of unwelcome changes. For instance, the new line is expected to reduce Kashmir’s dependence on Jammu, raising concerns among traders, businessmen and transporters in the latter region about the potential impact on their businesses.

There was a sign of things to come in the summer of 2021; when the J&K administration abolished the 150-year-old Darbar Move, the biannual practice of relocating the seat of governance from Srinagar to Jammu in the winter, Jammu’s business community reported significant losses.

Traders in Jammu claimed that the scrapping of the practice had resulted in a loss of ₹500 crore. With the new train service set to open, they fear that it will be a double blow to the economy, as people from Kashmir will no longer need to travel to Jammu. Instead, they will board trains in Srinagar and alight in New Delhi.

“First, the Darbar Move reduced the footfall of Kashmiris to Jammu in winter, and now, with the train service, tourists and travellers who previously passed through Jammu on their way to Kashmir will be able to go directly to the Valley. This will severely impact trade, transport, tourism, the hotel industry, and businesses in Jammu,” said Mahesh Chander Padha, chairman and founder of the J&K Tourist Trade Peoples’ Federation, a hotelier lobby.

The USBRL project has also led activists to flag environmental concerns such as habitat disruption in ecologically sensitive areas, loss of agricultural land, hazardous waste contaminating water bodies, and increased risks of landslides and floods, which could exacerbate environmental degradation and the effects of climate change.

The challenges aside, the line, once operational, is expected to transform life in the Valley.