Kashmir economy in dire straits

50-day covid19 lockdown costs Rs 7500 crore to Kashmir
Kashmir economy in dire straits
Representational Pic

The beleaguered Kashmir economy is suffering an estimated Rs 150 crore loss daily amid the ongoing covid19 nationwide lockdown.

As per rough estimates, the over 50 days' lockdown so farhas wiped off an estimated Rs 7500 crore from the Kashmir economy.

Curiously, the Acuite Ratings and Research Limited, a fullservice credit rating agency accredited by RBI, has pegged per day losses onaccount of lockdown across India at almost Rs 35,000 crore.

Making this figure as base,the per day losses come to Rs 150 crore to Kashmir as it shares 55 per cent ofJ&K GDP, which contributes 0.77 per cent to country's economy.

Amid this, the Kashmir business community is a worried lotas the lockdown has come as "second blow" to it within a span of 10months.  Post-August 2019, the valley'sbusiness losses were pegged at Rs 18,000 crore due to clampdown imposed in thewake by abrogation of special status of J&K.

"Our prime concern at this time is health, but there is nodenying the fact that our economy is in dire straits. World is facing lossesdue to corona lockdown, but our businesses are bleeding for little less than ayear," said President of Kashmir Chamber of Commerce and Industries, SheikhAshiq.

Chairman, PHD Chamber of Commerce and Industries, Kashmirchapter, Baldev Singh said "We are in such a situation that if the governmentwon't come up with a massive financial package for revival of businesses, mostof the business units will turn bankrupt."

"There is need to have a policy decision to safeguardKashmir's economy," he said.

No stories found.
Greater Kashmir
www.greaterkashmir.com