Infrastructure projects require billions of dollars, but they are destroyed in seconds due to strong ground motion during earthquakes. The disaster mitigation cell of any nation seeks sustainable and resilient infrastructure schemes to reduce the catastrophic effects of any seismic hazard. This study attempted to carry out detailed seismic microzonation of Jammu Region (JR), which is located in the northwestern part of the Himalayas. To accomplish this, seismic hazard analysis and liquefaction assessment are carried out, with a primary focus on site characterisation using geophysical field testing. For the proposed seismic zones, the performance and vulnerability of tunnels are evaluated under various seismic environments. Further, seismic risk of the 345 km long Udhampur Srinagar Baramulla Rail Link (USBRL) Project is assessed for serviceability in post-seismic conditions. The proposed zonation, risk matrices, and route maps will be useful for auditioning existing and proposed tunnelling projects in this area. This will pave the way for earthquake-resistant design of sustainable infrastructure projects in seismically active areas like the Himalayas.