Horticulture sector plays a vital role in providing livelihood security to the farmers globally under the changing agricultural scenario. Area, production, productivity and export of horticultural produces are vital for increasing farm income and overall employment in the agricultural sector. In this paper an attempt has been made to explore potential and strength of Jammu and Kashmir with regard to its production and export of fresh and dry fruits. Jammu and Kashmir is the major producer of apple and walnuts in India, 77 percent of apple and 90 percent of walnut production in India belongs to Jammu and Kashmir and percentage share of state in India’s total production is showing an increasing trend. The state has been declared as the “Agri. Export zone for Apples and Walnuts”. Given the declining share of traditional agricultural commodities in production, consumption and trade; horticulture represent an important industry to improve income growth and employment in rural areas of Jammu and Kashmir.