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KASHMIR ECONOMY SUFFERED LOSS OF RS 17,878 CR IN 4 MONTHS

— December 18, 2019 539 comments

SRINAGAR – The Kashmir econo­my suffered loss to the tune of Rs 17,878 crore in four months of re­strictions and shutdown in the val­ley following abrogation of Article 370 and creation of two union ter­ritories out of Jammu and Kashmir, a trade body said on Tuesday.

Releasing a comprehensive sector-wise report on losses due to disturbance after the August 5 announcement by Home Minister Amit Shah, the Kashmir Chamber of Commerce and Industry (KCCI) said the losses have been assessed based on Jammu and Kashmir’s gross domestic product of 2017-18.

“The study has focused on the 10 districts of Kashmir Valley compris­ing 55 per cent of the total popu­lation of Jammu and Kashmir. A time span of 120 days has been as­sumed for the calculations. As per this method, Kashmir’s economy has suffered a loss of Rs 17,878.18 crores,” the report said.

An assessment based on actual number of unit holders and per­sons engaged in each sector, job and financial losses suffered by them was undertaken, it said.

“For example, the tourism sector has been broken into its various sub-sectors like tour operators (inbound and outbound), house boats, hotels, tourist transport, shikaras, ad­venture sports and other allied sectors.

Efforts were made to make the report as inclu­sive as possible. The losses suffered by pony wal­lahs, rafting groups to photographers and guides have also been assessed,” the report added.

KCCI said the present disruption has result­ed in loss of jobs of lakhs of people.

Borrowers of financial institutions have lost their capacity to fulfil their commitments and a substantial number of accounts are likely to turn bankrupt, many business establishments have closed down or are contemplating clo­sure, it said.

“The sectors directly dependent on internet like information technology and e-commerce have been ruined. The government interven­tion in the horticulture sector for which Rs 8,000 crore was earmarked for purchase of apples has come a cropper and caused price turmoil and panic sales,” it added.

KCCI said no serious exercise has been un­dertaken to either assess the losses or to sup­port the helpless farmers.

“Tourism sector is in shambles. Artisans and weavers are jobless. With estimated losses of around Rs 2,520 crore, manufacturing is in tat­ters,” it said.

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