This paper examines the phenomenon of "supply creates its own demand" in the context of Jammu and Kashmir's economy. Originally posited by Jean-Baptiste Say, this economic principle asserts that the production of goods and services leads to the generation of income and demand for those same goods and services. In this study, we aim to explore how this phenomenon unfolds within the unique socio-political, geographical, and economic landscape of Jammu and Kashmir. By analyzing key sectors such as agriculture, industry, and tourism, we assess how production drives demand and evaluate factors inhibiting this dynamic, including political instability and infrastructural challenges. A regression analysis is used to provide empirical insights, followed by policy recommendations that could enhance the region's economic growth.