Srinagar's economy is highly dependent on tourism, agriculture, and traditional handicrafts. As a major urban center in the valley, it also acts as a commercial hub for surrounding rural districts.
While industrial manufacturing is limited due to the region's ecology and geography, the city thrives on its cottage industries. Retail, hospitality, and public sector employment also form significant portions of the local economy. In recent years, the government has pushed for modernizing the economy by encouraging IT startups and improving digital infrastructure. Cost of living is generally moderate compared to major Indian metropolitan areas like Mumbai or Delhi, though imported goods and housing can carry a premium.
