IIOJK economy suffered $9b loss since August 5, 2019

Islamabad, February 03, 2023 (PPI-OT):The economy of Indian illegally occupied Jammu and Kashmir (IIOJK) has lost over US$9 billion since the Indian Hindu nationalist government revoked its special status on August 5, 2019, causing a devastating impact on the livelihood of the local population. Kashmir Institute of International Relations (KIIR) in a report said, the primary sectors, including agriculture, horticulture, tourism and the handicraft industry, have all been adversely affected and many traders have shifted their trading centres to outside IIOJK and others have to find alternative ways to make money during this difficult time.

The report on “The Economic Crisis in IIOJK” says small businesses and shops in IIOJK were culturally colonized by the Indian government. “IIOJK’s economy has lost around nine billion dollars and three years of development,” the report says adding the abrogation of Article 35A dragged economy of the state to recession with high unemployment rate, collapsing of industries and consequent joblessness of thousands of people. It says, for the last 75 years, Indian occupation has affected not only social and cultural aspects but also political and economic aspects in IIOJK. The current economic crisis in IIOJK is actually a sequel to unrestrained and unjustified actions by the Indian government in the past.

Huge adverse impact of abrogation of Article 370 and complete lock-down for around 6 months followed by reduction in budgetary allocations by the Indian government have contributed to the current economic crisis in IIOJK. A study by the Institute of Development and Economic Alternatives has estimated IIOJK’s loss to unrest at Rs1,500 crore per year across India and Kashmir’s share was around Rs750 crore or 0.77% of India’s GDP since Kashmir contributes 55% of the state’s GDP.

Trade and tourism suffered a lot due to continued lock-down of the occupied territory while the Indian government’s cross-LoC trade suspension order on April 18, 2019 affected more than 1700 traders in IIOJK. From 2019- 2022, India’s occupation of Kashmir has led to more than $7 billion in economic losses. More than a million people have lost their jobs just since August 2019, including thousands in the tourism and horticulture industries. The existing economy in the territory is on the verge of collapse whereas the local businesses have no much hope for new investments, owing to the fact that it needs a credible economic policy. Only in the first three months after 5th Aug 2019, 71 percent of revenue declined in the tourism sector.

According to the report, the recurrent curfews and lockdowns by the Indian army are ruining the IIOJK’s economy. The IIOJK witnessed an economic loss of over Rs.21, 000 crores within 3 months in 2010, Rs.4, 500 crores over 26 days of curfew following the hanging of Afzal Guru in 2013, Rs.16000 crores for a period of five months from July 8 to November 30 in 2016, Rs.17, 878 crores in 4 months after the abrogation of Article 370 in 2019, more than $5.3 billion in the 10 months of lock-down from 2019-2020. The handicraft sector suffered a loss of around Rs 3,500 crore after August 5, 2019. IIOJK witnessed 312 siege and search operations in 2020, 195 in 2021 and more than 180 in 2022.

The internet and communication blockades (digital blackouts) since 2005 have also damaged the local economy. There were more than 400 digital blackouts and speed throttling in IIOJK over the past decade. The state economy suffered losses amounting to Rs. 4000 crore between 2012 and 2017 while after the abrogation of Article 370, sectors primarily dependent on digital technologies, almost 90 percent of small businesses and dozens of students who were preparing for various competitive exams suffered the most in the absence of internet services.

The IIOJK witnessed around 450 internet shutdowns between the years of 2012 and 2022. There were 116 shutdowns in 2020, 85 in 2021, while 2022 recorded the highest in the last 10 years, with a total of 146 shutdowns in IIOJK imposed by the Indian government. The report urged the United Nations to play its due role in resolving the decades-old Kashmir dispute. The economic blockade must be lifted to improve the economy of IIOJK, it further demanded.

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