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Jammu has historically been the capital ofJammu Provinceand the winter capital of the east, whileJammu and Kashmir princely state(18461952).Jambu Lochanwas the brother of Raja Bahu Lochan who constructed a fort, Bahu Fort, on the bank of riverTawi. The city name figures in the ancient bookMahabharata. Excavation nearAkhnoor, 32 kilometres (20mi) from Jammu city, provides evidence that Jammu was once part of theHarappan civilization.

Tourism is the largest industry in Jammu as in the rest of the state. It is also a focal point for the pilgrims going to Vaishno Devi and Kashmir valley as it is second last railway terminal in North India. All the routes leading to Kashmir, Poonch, Doda and Ladakh start from Jammu city. So throughout the year the city remains full of people from all the parts of India. Places of interest include old historic palaces like Mubarak Mandi, Purani Mandi, Rani Park, Amar Mahal, Bahu Fort, Raghunath Temple, Ranbireshwar Temple, Karbala, Peer Meetha, Old city and a number of shopping places, fun parks, etc.

Jammu city is the main cultural and economic centre of the administrative division of Jammu. The city has a number of small industries.Jammu has a number of woodgrain mills to cater to the local population. One of the most famous localBasmati Riceis produced in RS Pura area near jammu, which is then processed in rice mills in Jammu. Apart from Rice Mills scattered all around Jammu, industrial estate atBari Brahamnahas a large presence of Industrial units manufacturing a variety of products right from carpets, electronic goods, electric goods etc. The local government gives incentives for new units by foregoing taxes for a few initial years of establishment. Bari Brahamna also has a freight rail link that helps carry the goods manufactured here to other parts of India.