ISLAMABAD: The economy of Indian Illegally Occupied Jammu and Kashmir (IIOJK) has lost about US$9 billion since the Indian Hindu nationalist government abolished its special status on August 5, 2019, creating a severe impact on the livelihood of the local population.
“The primary industries, including agriculture, horticulture, tourism, and the handicraft industry, have all
been negatively affected; many traders have moved their trading hubs beyond IIOJK, while others must find alternate means for making money during this difficult time,” according to a report by the Kashmir Institute of International Relations (KIIR).
Economy Crisis in IIOJK
According to the “The Economic Crisis in IIOJK” report, the Indian government culturally invaded small enterprises and stores in IIOJK.
“IIOJK’s economy has lost around nine billion dollars and three years of development,” the report says, adding that the deletion of Article 35A led the state’s economy into recession, with high unemployment, failing industries, and thousands of people losing their jobs.
According to the report, Indian occupation has impacted not only social and cultural aspects of IIOJK, but also political and economic ones. The current economic crisis in IIOJK is a direct result of the Indian government’s previous unconstrained and unlawful activities.
The huge negative impact of Article 370 removal and complete lockdown for around 6 months, followed by a cut in financial allocations by the Indian government, has contributed to the current economic crisis in IIOJK.
As per a study conducted by the Institute of Development and Economic Alternatives, the IIOJK’s annual loss due to unrest is estimated to be Rs1,500 crore across India, with Kashmir accounting for about Rs750 crore or 0.77% of India’s GDP because Kashmir accounts for 55% of the state’s GDP.
Trade and tourism suffered greatly as a result of the state’s extended lockdown, while the Indian government’s cross-LoC trade restriction order on April 18, 2019 harmed around 1700 traders in IIOJK. From 2019 to 2022, India’s occupation of Jammu and Kashmir cost the economy more than $7 billion.
Million of people have lost their jobs in the region’s flagship tourist and horticulture industries since August 2019.
The current economy in this region is on the point of collapse, and local firms have little hope for fresh investments since it lacks a realistic economic policy. Only in the first three months following August 5, 2019, income in the tourism sector fell by 71%.
According to the report, the Indian army’s frequent curfews and lockdowns are destroying the IIOJK’s economy. IIOJK suffered an economic loss of over Rs.21,000 crores in three months in 2010, Rs.4,500 crores in 26 days of curfew following the execution of Afzal Guru in 2013, Rs.16000 crores for a five-month period from July 8 to November 30 in 2016, Rs.17,878 crores in 4 months following the abolition of Article 370 in 2019, and more than $5.3 billion in the 10 months of lockdown from 2019 to 2020.
After the 5th of August, 2019, the handicraft sector sustained a loss of roughly Rs 3,500 crore. IIOJK witnessed 312 siege and search operations, more than 180 in 2022, 195 in 2021.
Since 2005, internet and communication blockades (digital blackouts) have also harmed the local economy. Over the previous ten years, there have been more than 400 digital blackouts and speed throttling in IIOJK.
Between 2012 and 2017, the state economy experienced losses of Rs. 4000 crores, whereas after the removal of Article 370, industries primarily dependent on digital technology, over 90% of small enterprises, and dozens of students preparing for various competitive exams suffered the most in the absence of internet connections.
Between 2012 and 2022, Indian occupied Kashmir experienced around 450 internet outages. There were 85 in 2021, 116 shutdowns in 2020, and the largest in the prior ten years in 2022, with the Indian government imposing 146 shutdowns in IIOJK.
The report urged the United Nations to play its proper role in settling the decades-long Kashmir dispute. It also urged that the economic blockade be eased in order to help the IIOJK’s economy. APP
