Empirical investigation on forest sector in Jammu and Kashmir: Structural changes and determinants of growth

India, provide habitation to vast area of forests which interacts with number of biotic and a biotic component which provides goods and services. In consideration of the fact that forests with woodlands and huge biodiversity contribute significantly towards development of economy of Jammu and Kashmir, a northern state of India, an attempt has been made in this study to investigate the forest sector in Jammu and Kashmir and to check its structural changes and determinants of growth. The study confirms that, recently forestry sector (FNDP) has contributed about 10 per cent to the agricultural net domestic product and 2 per cent of state net domestic product. FNDP has increased significantly over the years and the estimates of compound growth rates indicated that the area exploited for extraction has decelerated at 6.33 per cent per annum, while the quantity extracted for it by 3.81 per cent. Consistent with declining extraction, the totals out-turn has been consistently declined over the years and has reached to just 73.92 (000m3) in recent years. The government has invested 408 lakh rupees in forest and logging sector during 2013-14 though it has declined drastically since 2005-06 that led to the decline of investment intensities to this sector over the years. Estimates of Forest Growth Model revealed that rural literacy, public investment in forestry, plantation and export value has contributed positively in forest development while proportion of urban population, rural poverty has negative impact on it. Based upon various findings, the study put forth few policy options for sustenance of forests and provide spectrum of ecosystem goods and services towards the human recreational activities.