Unemployment is a social issue which is rapidly branching out to ugly socio-economic problems like poverty, drug abuse, suicides, social unrest, mental health and crime. It is therefore essential and extremely urgent that a multipronged short-, medium- and long-term policy is adopted for addressing this unaffordable problem.
Investments that improve the productive capacity in traditionally strong sectors of J&K like Agriculture, Handicrafts, Energy and Tourism, where the quotient of scalability in terms of global market place is very high, deserves to be embraced with open arms
The retail sector which has already been suffering from a long economic winter in the region deserves safeguards rather than throwing them in an arena which they are not prepared to fight.
Besides Kashmir economy, the economic stress on the other side of the Jawahar Tunnel i.e., in Jammu division has started to become quite tangible. Economies, no matter how small, take decades to create and sustain balanced exchanges which support and strengthen the participating entities.
This untamed Inflation is making it excruciatingly hard for economically vulnerable sections of the society to make ends meet. To make the situation even worse, the contraction in J&Ks economy since August 5, 2019 as per various independent estimates has been a staggering negative 20-25%.
There is a need for a smart lockdown rather than a complete lockdown after the infections are plateaued. Importantly, the administration has to come up with an exhaustive vaccination program on a war footing. That alone will make this lockdown worth bearing.
One can’t help but only wonder if J&K has managed to not just survive but surprisingly outperform in many socio-economic factors despite living through a consistent vortex of political unrest, the level of economic emancipation in normal scenarios would have been at a different level altogether.
Laden in the velvet of rhetoric and glossed with a selectively chosen set of numbers, the idea is to project an image of achievement, progress and growth while carefully working around the not-so-pleasing statistics in order to maintain the public confidence in the policies.
The inferences drawn from the performance of advances, deposits and NPAs in the last 24 years of J&K economy reflect a pattern of decelerating economy with plummeting savings, unhealthy composition of credit and rising levels of failed businesses. The last 6 years have been one of the worst periods in terms of credit growth since financial year 1996-97
In terms of its tax payments, people of J&K are therefore paying proportionally better than economically most vibrant states of India. This is despite J&K falling in the bottom 20 percentile states in terms of the per capita income