The purpose of this article is to explore the nexus between the form and function of government and economic growth in the fragile states of India. To study the dynamics of the directional casual relationship between the government forms and functions and economic growth in Jammu and Kashmir, this study tries to apply the Granger causality test followed by LS multivariate regression analysis on the time series data. The study found that the government functions like resource allocation for asset creation, revenue‐generating capacity, and promoting infrastructure are having a positive and significant impact on economic growth, while law and order are having a significantly negative impact on economic growth in the state. On the other hand, the different government forms, the majoritarian government in the state is suitable for consistent economic growth than coalition and governor's rule. The results found are of amicable use in setting up the smooth growth trajectory of any region through arranging and rearranging political institutions from time to time.