Industry body estimates J&K economy loss at Rs 5,700 cr due to floods
Updated: Sep 15, 2014 12:59:54pm
New Delhi, Sept 15 (KNN) The recent devastating floods have cost the Jammu and Kashmir economy an immediate loss of Rs 5,400-5,700 crore, well exceeding 10 per cent of the state’s GDP.
According to initial estimates of the Associated Chambers of Commerce and Industry of India (ASSOCHAM), there has been heavy damage to trade, hotels, restaurants, horticulture and handicraft, the basic infrastructure of power, railways and communication in the state.
The estimated loss to the hotels, trade, agriculture-horticulture, roads and bridges is Rs 2,630 crore. High-cost infrastructure like railways, power and communication in the hilly terrain would have suffered a loss of about Rs 2,700-3,000 crore, the industry body said.
ASSOCHAM Secretary General DS Rawat said the losses are only initial estimates. The real loss to the state economy will be much higher since the impact of such calamities is long-drawn and it takes a long time before the physical infrastructure is restored.
“The biggest worry is the shattering of confidence among the tourists and it will take a long time and effort to win back the tourists to the state - the lifeline sector,” he said.
Citing devastating floods of Uttarakhand which also witnessed unprecedented flood fury last year, Rawat said it was yet to recover from the shock.
The industry body said the state economy stood at Rs 45,399 crore in 2013-14. The sectoral composition of State GDP indicates that agriculture and allied activities account for 20 per cent in the State GDP, Industry and mining contribute to about 23.5 per cent and the services sector made up the remaining 56.5 per cent.
Trade, hotels and restaurant services registered a turnover of close to Rs 3,800 crore in the year to March 2014. The tourism industry sources roughly distribute the tourists among Jammu, Kashmir and Ladakh region in the ratio of 40:40:20.
"The September-November season tourist inflow both from India and abroad is severely affected as is being witnessed by large scale cancellations. While cancellations for airlines, hotels are 100 per cent up to October 15, those who had booked for winters are watching the situation," feedback from the industry chamber's travel constituents indicated. (KNN/ST)
According to initial estimates of the Associated Chambers of Commerce and Industry of India (ASSOCHAM), there has been heavy damage to trade, hotels, restaurants, horticulture and handicraft, the basic infrastructure of power, railways and communication in the state.
The estimated loss to the hotels, trade, agriculture-horticulture, roads and bridges is Rs 2,630 crore. High-cost infrastructure like railways, power and communication in the hilly terrain would have suffered a loss of about Rs 2,700-3,000 crore, the industry body said.
ASSOCHAM Secretary General DS Rawat said the losses are only initial estimates. The real loss to the state economy will be much higher since the impact of such calamities is long-drawn and it takes a long time before the physical infrastructure is restored.
“The biggest worry is the shattering of confidence among the tourists and it will take a long time and effort to win back the tourists to the state - the lifeline sector,” he said.
Citing devastating floods of Uttarakhand which also witnessed unprecedented flood fury last year, Rawat said it was yet to recover from the shock.
The industry body said the state economy stood at Rs 45,399 crore in 2013-14. The sectoral composition of State GDP indicates that agriculture and allied activities account for 20 per cent in the State GDP, Industry and mining contribute to about 23.5 per cent and the services sector made up the remaining 56.5 per cent.
Trade, hotels and restaurant services registered a turnover of close to Rs 3,800 crore in the year to March 2014. The tourism industry sources roughly distribute the tourists among Jammu, Kashmir and Ladakh region in the ratio of 40:40:20.
"The September-November season tourist inflow both from India and abroad is severely affected as is being witnessed by large scale cancellations. While cancellations for airlines, hotels are 100 per cent up to October 15, those who had booked for winters are watching the situation," feedback from the industry chamber's travel constituents indicated. (KNN/ST)
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