The Kashmir region is facing economic recession due to the drastic decline in the industrial and trade turnover.
According to officials, as per the data received for preparation of quick estimates of gross domestic product (GDP) for 2014-15, there is a decline in comparison to the projected GDP growth.
In the year 2013-14 state’s GDP at current prices was Rs 87319 crores. Also the industrial turnover has witnessed a near 30 percent decline while trade turnover has seen a drop of near 60 percent.
The industrial production has come down by nearly 30 percent from the annual turnover of near Rs 1,000 crores.
The trade output has also come down by nearly 70 percent from the annual turnover of Rs 15000 crores due to decline in the disposable income which has affected the consumption levels.
The effects of the September 2014 floods are felt even now. The sales of both the industrial units and the traders have squeezed, which have hit their bottom lines.
“We are not talking of profit margins now, but how to reduce the debts that have been incurred in repairing the machinery. The sales of all the major industries including those involved in the manufacturing of power equipment and the agro-processing products has taken a hit,” said Mohammad Ashraf, President of Federation of Chambers Industries and Commerce Kashmir (FCIK).
He said over one and half year after the floods, the Kashmir industry is yet to come out from the “recession” as major portion of the sale proceeds have gone into repairing of the damaged machinery.
A senior official of the Directorate of Economics and Statistics (DES) said there has been a decline in all major sectors which contribute to the GDP.
“All major sectors including the agriculture and services have shown decline in the output,” he said.
Traders and industrialists said the government should take measures to spur growth in the economy.
President of Kashmir Trade and Manufacturers Federation (KTMF), Mohammad Yaseen Khan, said they have been seeking the interest subvention to offset the effects of the downturn.
“In the Prime Minister’s package of Rs 80,000 crore which was announced last year, we were assured that Rs 800 crore will be disbursed to the financial institutions as interest subvention. However the government has not adhered to by the commitment,” he said.