This year’s Jammu and Kashmir Budget will be crucial to put the Union Territory’s (UT) economy back on rails, ward off growing unemployment and revive key sectors, Valley-based traders and businessmen said on Monday.
“We have many expectations from the upcoming Budget for Jammu and Kashmir. We have reached a critical stage where local businesses and trade demand a comprehensive revival package for the whole Union Territory, especially the Kashmir division that suffered the most losses since August 5, 2019 [when the Centre ended J&K special constitutional position],” Kashmir Chamber of Commerce and Industry president Sheikh Ashiq told The Hindu.
The KCCI had recorded a loss of ₹18,000 crore in the wake of the Internet blackout and security restrictions after August 5, 2019. The losses jumped up to ₹44,000 crore by the end of year 2020.
“We have submitted a comprehensive report on the losses to the Union Finance Minister and top officials in Jammu and Kashmir. These losses were inflicted by a situation that was beyond our control. It was followed by a series of lockdowns in the face of the pandemic. Our businesses are not able to hire the unemployed youth anymore. It’s going to only grow if no positive intervention is made through the upcoming Budget,” Mr. Ashiq warned.
Against the national average unemployment rate of around 7.74% for October to December last year, the Centre for Monitoring Indian Economy (CMIE) figures suggested that the unemployment rate in Jammu and Kashmir hoveredbetween 16 and 22.2%.
“Till new investment comes to Kashmir, which is likely to take a few years, we have suggested a few measures to the government. Kashmir requires hand holding of young entrepreneurs, tax holiday, capital infusion and amnesty on GSTs for filing returns.
Drop in exports
“Exports have already dropped by 45%. We expect measures and schemes that will fuel exports and are able to retain around 3-lakh strong workforce working in Kashmir’s handicraft sectors,” Mr. Ashiq said.
Associated Chamber of Commerce and Industry Kashmir (CCIK) president Tariq Rashid Ghani said the Union government had promised fast-paced economic development in the region after August 5, 2019. “We were badly hit by the lockdown imposed after Article 370 removal. The government needs to announce a financial package for Jammu and Kashmir to fuel its economic growth,” said Mr. Ghani.
Special category
He said the Centre should put Jammu and Kashmir in a special category “since no economic growth took place since August 5, 2019. “Steps such as waiving off interest accumulated since August 2019, interest subvention scheme, fresh capital on low rate of interest, GST holiday, moratorium of two years on fresh loans, reservation in tenders at all-India level to local entrepreneurs are needed,” Mr. Ghani added.
Kashmir Trade Alliance (KTA) president Ajaz Shahdhar said he wasexpecting lowering of interest rates on business loans. “We expectconcrete steps so that we see an overall business growth,” he said.
