Valley News Desk

Azhar Ahmed

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.

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.

Author is Business and
Finance Management student.

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