Article 35A, which restricts non-permanent residents to buy property in Jammu and Kashmir, is "constitutionally vulnerable" and also hampering economic development of the state, said Finance Minister Arun Jaitley on Thursday.
The statement comes amidst the Bharatiya Janata Party (BJP) pressing for early elections to the state assembly in the state.
The state is under President's rule and the Union Cabinet takes all policy decisions related to the militancy-hit state.
Jaitley said in a blog post the seven-decade history of the state of Jammu and Kashmir confronts changing India with several questions. "Was the Nehruvian course, which the state had embarked, a historical