The Kashmir Chamber of Commerce and Industry (KCCI) has come up with latest figures on job losses and said businesses suffered a loss of nearly Rs 18,000 crore after the clampdown in the aftermath of abrogation of J&K's special status on August 5.
"The present disruption has resulted in the loss of jobs 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," the KCCI said in a preliminary report.
"The top-down method of loss estimation (was) based on J&K’s Gross Domestic Product of 2017-18 based on J&K’s Economic Survey 2017-18... A time span of 120 days has been assumed for the calculations. As per this method, Kashmir’s economy suffered a loss of Rs 17,878.18 crore," it said.
It states that the internet gag since August 5 has ruined the sectors directly dependent on the internet like information technology and e-commerce. It has also mentioned that journalists have had to work without access to the internet which has severely impaired their functioning.
"The business community has not been able to file their online returns, faced hardships in the generation of e-bills and other allied difficulties resulting in a crippling impact," it says.
The report released in Srinagar states that tourism sector is in shambles. "Artisans and weavers are jobless. With estimated losses of around Rs 2,520 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 per cent – a forty-fold increase on the existing rates and even the GST portion is loaded with this tax. General Trade is impacted to the extent of Rs 3,200 crores," it said.
The chamber report also mentions about healthcare which has suffered as doctors too had lost means of communication. "Students faced major academic disruption in their pursuit of education.
The report says there is not a sector of the economy which has escaped the brunt of the disruption. The study has focused on the ten districts of the Kashmir Valley that account for 55 per cent of Jammu and Kashmir’s total population.
The chamber report warned of more trouble ahead, claiming the focus of the promised development appeared to be non-local investors and investments. The revocation of key provisions of Article 370 has lifted the ban on outsiders from owning land in Jammu and Kashmir.
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