Home Business J&K industry body says state’s economy lost Rs 17,878 crore in 5 months

J&K industry body says state’s economy lost Rs 17,878 crore in 5 months

The period of unprecedented lockdown that affected trade and business across the state, according to a preliminary economic loss assessment report released by the Kashmir Chamber of Commerce and Industry (KCCI).

The period of unprecedented lockdown that affected trade and business across the state, according to a preliminary economic loss assessment report released by the Kashmir Chamber of Commerce and Industry (KCCI).

Jammu and Kashmir’s economy has suffered a loss of Rs 17,878.18 crore between August 5, 2019 and December 3, 2019, the period of unprecedented lockdown that affected trade and business across the state, according to a preliminary economic loss assessment report released by the Kashmir Chamber of Commerce and Industry (KCCI).

The present disruption has resulted in loss of jobs in lakhs, borrowers of financial institutions have lost their capacity to fulfill their commitments, a substantial number of accounts are likely to turn bankrupt, many business establishments have closed down or are contemplating closure, the KCCI said, adding that sectors directly dependent on internet like information technology and e-commerce have been destroyed.

“The government intervention in the horticulture sector for which Rs 8,000 crore were earmarked for purchase of apples has come a cropper and caused price turmoil and panic sales. The fruit crops suffered heavy losses and fruit trees suffered permanent damage due to the unavailability of weather updates on the heavy snowfall,” the chamber said.

Two methods for assessment of losses have been used 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 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 crore,” it said.

The second method is based on a sector-wise study of the local economy, which make an assessment based on the actual number of unit holders and persons engaged in each sector, job and financial losses suffered by them was undertaken.

For example, the tourism sector was broken into various sub sectors like tour operators (inbound and outbound), house boats, hotels, tourist transport, shikaras, adventure sports and other allied sectors. The estimated total losses using this method are Rs 14296.10 crore, the KCCI said.

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