Jammu and Kashmir economy suffers Rs 270 crore loss per day due to COVID-19 lockdown

The already battered economy of Jammu and Kashmir is suffering an estimated loss of Rs 270 crore per day due to COVID-19 lockdown.

Acuite Ratings & Research Limited, a Credit Rating & Research company, has pegged per day losses on account of lockdown across India at Rs 35,000 crore. The company is registered with the Securities and Exchange Board of India (SEBI), and accredited by Reserve Bank of India (RBI) as an External Credit Assessment Institution (ECAI), for Bank Loan Ratings under BASEL-II norms.

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Taking its figures as a benchmark, the loss to J&K, which accounts for 0.77 per cent of India’s GDP, comes to Rs 270 crore of which Kashmir’s share is estimated at Rs 150 crore approximately as its contribution to state GDP is over 55 percent.

Jammu and Kashmir’s GDP is pegged at Rs 1.30 lakh crore per annum.

After security and communication clampdown last year in the wake of revocation of Article 370, Kashmir economy suffered loss to the tune of Rs 17,878 crore in four months from August to November. The losses had been assessed based on Jammu and Kashmir’s gross domestic product of 2017-18.

Due to the continuous losses in Kashmir, borrowers of financial institutions have lost their capacity to fulfil their commitments and a substantial number of accounts have turned bankrupt with many business establishments having closed down or are contemplating closure.

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The tourism sector, one of the backbones of Kashmir economy, is in shambles while artisans and weavers are jobless.

Last year’s clampdown had also hit farming, horticulture and the arts and crafts that contribute the most to Kashmir’s export-oriented economy.