Agitation in J&K costs its industry Rs 1,500 cr: Assocham

NEW DELHI: Economic activity in Jammu and Kashmir has been severely impacted due to the ongoing agitation in the region, resulting in a loss of Rs 1,500 crore to the state's industry in the past couple of weeks, Assocham said.

Among the sectors worst hit by the agitation and state-wide protests are tourism, silk, hosiery, carpets, handicrafts, fruits, tourism, forest-based and herbal products, the chamber said.

"If the agitation continues, Jammu and Kashmir's economy will suffer a major jolt as investors that have committed over Rs 5,000 crore worth of investment for 2008-09 would venture into neighbouring states of Punjab, Haryana and Himachal Pradesh," Assocham President Sajjan Jindal said.

The region has witnessed several violent protests during the last few days over the Amarnath land transfer row.

The industries have also not been able to fulfil their respective export commitments. Exports from the region have declined by about 30 per cent in view of the ongoing agitation, due to which movement of goods, particularly fruit and other items has come to a standstill, he said.

In an appeal to political parties, Jindal said efforts should be made to arrive at an amicable solution for restoring normalcy in the state. With law and order improving in the state in the past few years, investment proposals by companies had grown 10-fold from around 200 million dollar in 2001 to more than 2,300 million dollar in 2007.

While this investment could multiply manifold, such agitations discourage investors and threaten the peace in the region. According to recent study by the chamber, fresh investments of Rs 28,000 crore were expected to flow in Jammu and Kashmir by 2012, creating employment opportunities for 25 lakh people.