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Unrest-hit Kashmir suffers Rs 6,400 crore loss during 49 days of curfew, strikes

Taking a toll on the economy of Kashmir, the unending unrest incurred a whopping Rs 6,400 crore loss to the valley. With businesses being badly hit and separatist-sponsored strikes in most parts for the past
India TV News Desk Srinagar August 26, 2016 17:26 IST
India TV News Desk

The unending unrest in the Kashmir Valley has dealt a body blow to the economy of the region, with reports pegging the loss to the Valley in its wake at a staggering Rs 6,400 crore. With businesses being badly hit and separatist-sponsored strikes in most parts for the past 49 days, the economic situation has drifted on the road to worse.

The Valley has been constantly battling protests since the killing of Hizbul Mujahideen commander Burhan Wani in an encounter with security forces in south Kashmir's Anantnag district on July 8.

Clashes between protesters and security forces have claimed the lives of 66 people and left thousands of others injured. Shops, business establishments, private offices and petrol pumps have been shut as the separatists groups have called for a complete strike to protest the civilian deaths in the violence after Wani's killing.

The separatists have announced periods of relaxation, but they are usually in the night which does not help the traders who allege that there have been instances of masked youths or even security forces forcing the shopkeepers to down the shutters.

"Kashmir is suffering losses of about Rs 135 crore daily. This estimates to over Rs 6,400 crore so far," Mohammad Yaseen Khan, president Kashmir Traders and Manufacturers Federation (KTMF), said here. Khan, however, said these figures were based on the daily business six months ago. He said the trader community wants the Kashmir issue to be resolved permanently

The state government has suffered revenue losses close to Rs 300 crore in the past one-and-a-half months. "The collection of levies and taxes has come down drastically since the unrest began. The sales tax collection has been the worst hit," an official in the Finance department said.

Similarly, tourism, considered to be the mainstay of Kashmir's economy, has also come to a stand still. "People are turning away from Kashmir due to the unrest," a tourism player said here. He said that hotels and houseboats were empty and famous tourist spots were looking desolated.

An official of the Tourism Department, who did not wish to be named, admitted that tourism in the Valley was on decline but said they were "helpless".
"What can we do? The department is helpless. We cannot go outside the state and ask people to visit the Valley. How can we even expect people to visit the Valley when the situation is such," the official said. Till this situation is addressed and the issue resolved, the tourism would continue to be affected, he said.

(With PTI inputs)