KCCI releases report: Kashmir lost Rs 17800 cr in 120 days
Srinagar, Dec 17:
Kashmir has witnessed financial losses to the tune of Rs 17800 crore and almost
5 lakh job-losses in the first 120 days of uncertainty triggered by the
abrogation of Art 370 on August 5, reveals the ‘Preliminary Economic Loss
Assessment Report’ by Kashmir Chamber of Commerce and Industries (KCCI).
Tuesday, the report is the first official such document putting into numbers
the overall economic disarray the valley landed into after the government of
India abrogated its special status and divided it into two union territories.
report shows, was losing over Rs 119 crore each day in 11 major sectors the
valley’s fragile economy roots into.
A whopping 4.96
lakh job losses during the period too form the crux of the report, implying how
hard the uncertainty and months of closure hit the common Kashmiri.
estimated loss of 120 days for 10 districts of Kashmir, the report shows, is Rs
17,877 crore with services sector, including Tourism, taking the biggest
cumulative hit of Rs 9191 crore during the period. The sector also witnessed a
whopping 1,40,500 job losses, the report shows.
In the same
period, agriculture and its allied services lost Rs 4591 crore with 12000 job
primarily covering manufacturing and construction sub-sectors, the report shows,
witnessed losses of Rs 4095 crore triggering 70,000 job losses.
says it employed two methods for assessing the losses.
The first one,
the Chamber says in the report, is the top-down method of loss estimation based
on J&K’s Gross Domestic Product of 2017-18 stated by the year’s Economic
“In this regard,
the study has focused on the 10 districts of Kashmir comprising 55% of the
total population of J&K. 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
17878 crores,” reads the report.
The second method
of calculation, the report says, is based on the sector-wise study of the local
based on the actual number of unit holders and persons engaged in each sector,
job and financial losses was undertaken,” it adds.
Voicing grave concerns over the state of economy in the valley, the KCCI report
says that the political disruption has “resulted in loss of job to lakhs, 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 adds that the
government intervention in horticulture for which Rs 8000 crore were earmarked
for purchase of apples “has come a cropper and caused price turmoil and panic
“…Tourism is in
shambles. Artisans and weavers are jobless. With estimated losses of around Rs
2520 crores, manufacturing is in tatters.”
KCCI adds, cannot find buyers for their vehicles. Automobile dealers and
potential buyers of new vehicles have been burdened with an unprecedented tax
of 9 to 10 percent ¬– a forty-fold increase on the existing rates and even the
GST portion is loaded with this tax.
called the report a small step towards putting on record the economic losses
the population of Kashmir has suffered “in their quest for a life of dignity,
respect and honour.”
“In this regard,
no compensation – in any manner whatsoever– is sought from any quarter.”
interests of Kashmir, the report says, appear to be in harm’s way and the
continuation of the present situation only leads towards distress sales of assets
assessments in the offing: Sheikh Ashiq, President of the Chamber, told The
Kashmir Monitor that the assessment was an on-going process and the current
report was preliminary in nature.
“A far accurate
picture of the economic losses can be gauged once the slump caused by the
uncertainty wanes completely,” he said.