Covid 19 lockdown and Abrogation Imposition v/s Economic crisis in Kashmir

Covid 19 lockdown and Abrogation Imposition v/s Economic crisis in Kashmir

‘Reconsider policies and Empower depressed: centre should come forward’

Emergence of crisis is on its fatal stage with the facing down turn on business economics. The backbone hold was supported with the relief on paying the EMI’S on business loans has now came to an end with further no relief. This decision of Reserve Bank of India was putting many borrowers on dark as of with no economic recovery. The major number of business loans were already under NPA and the borrowers weren’t able to reboot the previous pending EMI’S. This circumstance has created a vacuum and recession on the business plans has earlier been taken to support the taken credit amount on the overall profit from the created unit which is maximum not more than 10-15% from its profit rate. Current researches are sayingthat the profit rates from the overall expecting profit is less than 5% and somewhere are more lesser than the that of its actual rate. This decline has doubled the worries of borrowers either to support loan EMI’S by rewinding the business establishments. This is the only option lying with business personals to save themselves from theirdepressed loans. The insecurity for the mortgaged loans is more threatening than any other loans andis going to left lakhs of borrowers disconcerted to think abnormally, that how to repay the EMI’S of their depressed loans with interests. Taking an example of the situation in Kashmir from the revocation of Art 370 and 35A, the Kashmir’s economy suffered loss to the tune of Rs: 17’878 crores in four months of restriction and shutdown in the valley following the said abrogation and creation of two union territories out of Jammu and Kashmir. Not only the businesses hugely suffered tourism sector on which the majority of Kashmiri people’s economy is depends to feed themselves and family is badly suffered too. The tourism sector in the valley is in shambles, artisans, weavers and other associated with the sector are jobless. As per the record, this sector has suffered an estimated loss of Rs 2’520 crore. This sector which forms 8-10% of J&k’s GDP, has shown a largest decline in a half decade with less 50000 tourists, who visited in the valley between August to December 19. Total gross has shown a decline in the graph of tourism sector which sums up 86% drop only in the imposition of four months.
Revocation has distraught the economics of the valley to the worst with roughly a loss of USD 2.4 Billion, while job losses in the valley were under just half million as per the reports of KCCI (Kashmir chamber of commerce and industry).The total impression of economy is shown a downturn not only with the abrogation but the post revocation time has put everything else into shambles because of the harsh of winter of 2020, which also became a vital factor for the depression on the businesses run on various finances.The worries of those depressed borrowers were put their businesseson stake with no recovery of its actual utilized amount on establishments. These were fundamental issues which affected the economic growth in the valley. The most affected sector was in all the education sector with crippled internet facility. The clamp down on the internet facilitation has also became an affecting factor which thrown education sector into a dark age with no formal education. our unfortunate generation has suffered huge loss in their academics since the Jammu and Kashmir was stripped of its statehood and its special constitutional status, and the second most affecting factor which crippled the education sector badly is Covid 19 lockdown. While all these factors considerably dipped the economics of the valley, the cross- border infiltration increased too causing the over burden on the economic in the valley.
Taking up these issues into consideration. Government of India should promote the different schemes to facilitate those of economically depressed businesses and other sector suffered due to abrogation and covid19 which will empower them in the establishments to re-grow again. But taking up the policies of current regime into consideration which has crippled the business establishment under the huge burden of interest rates with already NPA accounts along with the extra burden on the amount halted for a period of moratorium. Although the relief packages announced earlier were providing an assumption of relaxation for a specific period especially to those of borrowers. But the condition has not allowed them to restart the ventures with the unlocking in phased manner, because the loss was lured the capitalised economy with no profits for a period of imposed lockdown.
Reviewing the results,are catastrophic in its appearance for each and every sector in the valley, were not only facing the breathlessness in opening out their problems but have been facing devastated down turn in their business establishments and in other autonomous sectors the condition is much worse. To overcome up to an extent from all such problems, centre Government should need to reconsider the policies to empower such distressed sectors to relieve them from the reeling dankness. As such, if the Government shall restart the generation of EMI’S from such organisations, soon the time will come; when almost 95% of the established borrowers were being counted into the non-performing accounts which will put the business of bank units into shambles also with these NPA accounts. The normative impact on overall economy with the declining growth rate in GDP has affected the business, tourism, handicraft at a large scale. The policies which the government is implementing not that helpful and supportive in its practical aspect. Specifically, thecase study shows that the valley’s crippled economy with devastated education sector, and with lakhs of youth who lost their employment will take at least a decade to overcome from the lossesin case conditions will be totally normalised. To have a balanced hold in overcoming from all such depressions Centre Government should reconsider the empowerment policies for the welfare of all such establishments on which thousands of families feed upon. Thereupon the Government should also need to empower the education sector of valley by restructuring the policies to overcome from the losses suffered from the revocation of Art 370 and 35A and the losses which caused due to pandemic. The expectations are even much higher than its practical results. People who suffered at first hand from all these despotic conditions are the worst victims who need to be empowered by reconsidering the empowerment policies in and on to support the sufferer and the suffered.

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