Five lakh jobs, Rs 17,877 crore loss in Kashmir since August 5: KCCI report

18 December 2019

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Srinagar: In the tumultuous four months since August 5, 2019, when Jammu & Kashmir’s special constitutional status was struck down, Kashmir region has suffered an estimated loss of about five lakh jobs and an economic loss of Rs 17,877 crore.

This estimation is based on a rough assessment conducted by the Kashmir Chamber of Commerce and Industry (KCCI) in a report, titled Preliminary Economic Loss Assessment Report, released on December 17.

Sheikh Aashiq, President KCCI, told Ziraat Times that the body was operating in difficult circumstances with most of its members facing economic hardships and a stark flight of capital and human resources out of Kashmir.

According to the Preliminary Economic Loss Assessment Report the total estimated loss of 120 days for 10 districts of Kashmir is Rs 17,877 crore, with the services sector, including tourism, taking the biggest hit of Rs 9,191 crore during the period. While Jammu & Kashmir consists of 20 districts, this report has focused on the ten districts of Kashmir region which have been worst hit by the communications and other clampdowns.

According to the assessment, Kashmir was losing over Rs 119 crore each day in 11 major sectors the Valley’s fragile economy roots into.

While the report suggests a total loss of 4.96 lakh jobs, the services sector, including tourism, has lost an estimated 1,40,500 jobs.

Agriculture and its allied services have lost an estimated Rs 4,591 crore with 12,000 job losses. Manufacturing and construction sub-sectors witnessed losses of Rs 4,095 crore, wiping out 70,000 jobs, according to the report.

The assessment methodology

According to KCCI, it employed two methods for assessing the losses. The first is the “top-down method of loss estimation based on Kashmir’s Gross Domestic Product of 2017-18 stated by the year’s Economic Survey.” The second method of calculation is based on the “sector-wise study of the local economy.”

“An assessment based on the actual number of unit holders and persons engaged in each sector, job and financial losses was undertaken,” the report said.

KCCI said the present disruption has resulted in the loss of jobs to lakhs, borrowers of financial institutions have lost their capacity to fulfil commitments and a substantial number of accounts are likely to turn bankrupt.

“Many business establishments have closed down or are contemplating closure. Sectors directly dependent on the internet like information technology and e-commerce have been ruined”, the report said

The KCCI report also notes that the intervention in the horticulture sector, for which Rs 8,000 crore were earmarked for the purchase of apples, has caused price turmoil and panic sales.

“Tourism is in shambles. Artisans and weavers are jobless. With estimated losses of around Rs 2520 crores, manufacturing is in tatters. Transporters 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,” the report said.

KCCI 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.”