Srinagar is the summer capital of the state of Jammu and Kashmir in India. The city lies on both banks of the Jhelum River, a tributary of the Indus River. The city is famous for its lakes and houseboats, traditional Kashmiri handicrafts and dry fruits. Srinagar is the summer capital of the state of Jammu and Kashmir in India. The city lies on both banks of the Jhelum River, a tributary of the Indus River. The city is famous for its lakes and houseboats, traditional Kashmiri handicrafts and dry fruits.