Lockdown dents K-economy by Rs 45K cr

M Aamir Khan

Tribune News Service

Srinagar, August 30

Successive lockdowns during the past year have dented the Kashmir region’s economy by over Rs 45,000 crore as per the report released by a Valley-based traders’ body.

Businesses first remained shut for months after the abrogation of Article 370 on August 5 last year and just when economic activities had started picking up early this year, the Covid-19 lockdown started.

“Since August 5, 2019, the business community has suffered a total loss of Rs 45,000 crore. The total loss of Rs 21,320.64 crore took place as a result of the lockdown caused by coronavirus in the Valley since March 18, 2020,” said a report released by the Kashmir Trade Alliance (KTA).

Talking to The Tribune, KTA president Aijaz Shahdhar said the final report would be released once the Covid-19 lockdown ended completely. “Markets have only opened on a rotational basis in Srinagar recently and other restrictions, like free movement outside the Valley, will remain till the pandemic. Therefore, we released this preliminary report. The final report will be released after the lockdown fully ends,” Shahdhar said.

He said the interim report was compiled after covering the “daily trade and business rates, gross domestic product (GDP) for 2017-18 and the economic review”.

The report said the manufacturing sector suffered the maximum losses during the past five months at Rs 3,161.60 crore, followed by the transport sector at Rs 2,888 crore. Similarly, the agriculture, horticulture, and floriculture sector suffered a loss of Rs 942.4 crore, while the livestock sector suffered a loss of Rs 2,234 crore. It said the tourism sector lost Rs 1,292 crore, while the hotel and restaurants suffered a loss of Rs 760 crore.

Earlier, markets had opened on a rotational basis after 85 long days of the Covid-19 lockdown on June 13. However, the lockdown in the Valley was back from July 13 and markets again opened on a rotational basis from August 17.