Kashmir lost over Rs 17K cr in four months following Article 370 repeal: Report

On August 5, parliament passed laws and resolutions that bifurcated the region into two union territories and scrapped provisions that gave it special ststua and its people special privileges.

The Kashmir valley has suffered financial losses to the tune of Rs 17,878 crores in the past four months, after restrictions were imposed in Jammu & Kashmir following the scrapping of Article 370 , which granted special status to the region, said a report released by the Kashmir Chamber of Commerce and Industries (KCCI), Kashmir’s biggest trade body on Tuesday.

The report further stated that the tourism sector is in shambles, and that artisans and weavers are jobless. (ANI)

“Two methods for assessment of losses have been adopted by the KCCI. One is the top down method of loss estimation based on J&K’s Gross Domestic Product of 2017-18 based on J&K’s Economic Survey 2017-18. In this regard, the study has focused on the ten districts of Kashmir Valley comprising 55% 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,’’ reads the KCCI report.

Earlier this month, the trade body estimated the losses at Rs 15,000 crore, saying this was a “conservative estimate”. KCCI president Sheikh Ashiq Hussain said at the time that the body would soon release a more comprehensive update.

On August 5, parliament passed laws and resolutions that bifurcated the region into two union territories and scrapped provisions that gave it special ststua and its people special privileges. To contain the fallout, internet and communication access was restricted, several political leaders detained, and curfew imposed. Some of these restrictions have since been eased.

The report released on Tuesday further said: “The present disruption has resulted in the loss of jobs to lakhs; borrowers of financial institutional have lost their capacity to fulfil their commitments…; many business establishments have closed down or are contemplating closure... The government intervention in the horticulture sector for which ₹8,000 crores was earmarked for purchase of apples has come a cropper and caused price turmoil and panic sales.”

The report further stated that the tourism sector is in shambles, and that artisans and weavers are jobless. “With estimated losses of around Rs 2,520 crores, manufacturing is in tatters....’’

“We will be submitting the report to the state as well as the Centre in the next few days,’’Ashiq said after a meeting with Union minister of commerce, Piyush Goyal on Monday.

State government officials said that the figures quoted by the trade body have not been substantiated.