The Kashmir Chamber of Commerce and Industry (KCCI) -- the largest, elected business body in Indian-administered Kashmir -- has estimated that business community has suffered losses, amounting to 100 billion rupees ($1.39 billion), due to lockdowns and curfews.
The region is under continuous lockdown since Aug 5 when India scrapped provisions of Article 370 of its constitution that provided a certain degree of autonomy and protected region’s demographic character over the past 70 years.
In an interview with Anadolu Agency, KCCI President Sheikh Aashiq said the business community has received a serious jolt, from which it is difficult to recover. He identified the suspension of internet services as the main factor behind the crippling Kashmir economy.
AA: What is the present status of the economy in Kashmir?
Sheikh Ashiq (SA): There is no business happening in Kashmir. Somehow people are surviving. Be that tourism, information technology (IT) or handicraft industry, everything has taken a hit. Off late, we have started doing business in the morning hours and now have extended working hours. But in reality, business activities are at a halt.
AA: India has said it had scraped autonomy to generate more economic activity and make region prosperous. Why Kashmiri businessmen have reacted so adversely?
SA: Article 370 of the Indian constitution denoted a sense of security for us. We somehow feel that something has been snatched. That is why we saw spontaneous reactions from the business community. They did not open their shops, even after the government lifted the restrictions partially. The shutdown in Kashmir by businessmen was a spontaneous reaction to this sense of insecurity.
AA: It is now more than 100 days since businesses are shut in Kashmir. What is the estimation of losses incurred by traders?
SA: Our preliminary assessment suggests that the business community has suffered losses of up to 100 billion rupees ($1.39 billion) since Aug 5. Also, we believe nearly 100,000 people have lost jobs due to restrictions. Till today restrictions have not been lifted. The internet continues to be out of reach. Everyone knows that businesses in the 21st century are dependent on the internet and communication. Our mainstay of economy, tourism and travel sector is dependent on the internet. The government has started providing internet facilities at some selected makeshift places. No business can run like that. With this facility, you can only send an emergency mail. No normal business activity is taking place in Kashmir.
AA: Which are the main sectors affected due to the ban on the internet?
SA: I guess all sectors. The IT industry, which was taking roots in Kashmir, due to its pollution-free climate has been hit badly. How can an industry survive without an internet connection? There is no industry left today, which is not linked to the internet. Even the media sector is the worst hit.
AA: Have you apprised the government about these critical issues?
SA: We have been approaching the government continuously. The first thing we ask them to restore internet services. They give us assurances. Even today, our KCCI office has no internet.
The government says the autonomy was scrapped because it will bring development. We are for development. But you also need to understand that for the development, you need a sense of security and the business to grow. But presently, the business sector is bleeding. Many people, who had taken bank loans for startups, have been hit badly.
