For the past three years, Kashmir's traders have suffered massive losses in the business community. First, it was due to the removal of Jammu and Kashmir's special status and then due to the COVID-19 pandemic.
In an interview with Sputnik, Sheikh Ashiq, the head of the Kashmir Chamber of Commerce and Industry and a leading businessman himself, talked about his meeting with Prime Minister Narendra Modi and a business delegation from Gulf countries.
He also addressed the ailing industries of Kashmir and the business community pinning its hopes on a business revival in 2022.
Sputnik: What were the key issues that you discussed during the business delegation's interaction with Prime Minister Narendra Modi last week?
Sheikh Ashiq: Actually, the meeting was long overdue. In 2020, we met with the federal Home Minister [Amit Shah] and the Finance Minister [Nirmala Sitharaman]. At that time, we were supposed to meet the prime minister too. But unfortunately COVID occurred, and everything was postponed.
The meeting happened in a cordial environment, and we discussed at length the overall economic issues facing the business community
Sputnik: Since 2019 the government has talked about bringing massive investments into Kashmir. Has the federal government fulfilled its commitments so far?
Sheikh Ashiq: As for industrial investments, as per my records, 99% of investment in Kashmir is done by local people. We, at the Kashmir Chamber, are supportive of the idea of our youth coming forward and taking benefits of the new industrial policy.
We have encouraged people from the far-flung areas to come forward and apply for industrial land so that they are able to start local industries and produce the things themselves.
Sputnik: The federal government announced a business package last year that provided incentives to the local businesses of Kashmir. Has the package been of any help to the industries designated as "sick" for incurring massive losses?
Sheikh Ashiq: We submitted our memorandum and business loss reports to the government and met the union Home Minister and Finance Minister. Those meetings were followed by a meeting with the Honorable LG [Jammu and Kashmir Lieutenant Governor Manoj Sinha].
He came up with a business revival plan of INR 13.5 million ($176.9 million). It was to give revival impetus to local industries. INR 8 billion ($104.8 million) was earmarked for interest subvention at the rate of almost 5% for six months.
This was done to standardise accounts of those business units that got sick during this period (2019-2021).
Our demand is that every "sick" unit, which has been downgraded (before 2019), should also be provided revival measures. We discussed this matter with the prime minister because we want every business in Kashmir to function rather than being shut down.
Sputnik: A delegation, including businessmen from the Gulf countries, recently visited Kashmir. The businessmen promised to invest in Kashmir. Do you think this will be of help or will it rather pose a new challenge for the local traders or businessmen to compete with Gulf businessmen's financial backing?
Sheikh Ashiq: I had one-on-one interaction with them....I could see that they wanted to have collaboration with the people and as far as collaborations and doing business are concerned, we are open to the idea.
If our local and young entrepreneurs have channels back in the Gulf, we will support that. The delegation also announced that they will open a Kashmir business centre, which will help our young entrepreneurs and start-ups to connect in the Gulf.
After the Eid festival there might be a meeting where we will further push the idea of local businesses having tie-ups with businessmen from the Gulf countries.
Sputnik: Having witnessed a difficult phase since 2019 in the wake of the abrogation of Kashmir's special status and after, businesses, especially horticulture -- the lifeline of Kashmir -- suffered along with other industries like tourism. Do you foresee a revival this year?
Sheikh Ashiq: The last three years have been very tough for us. In fact, the whole world has faced COVID. But we also saw the August 2019 situation [revocation of special status of Jammu and Kashmir] where everything was locked for 5-6 months. We were just coming out of it when we were confronted with COVID, due to which all our business sectors suffered huge losses.
But it was the strength and will power of the business community, who decided to make a comeback and put our businesses on track. This year, we have put all our expectations that this business year should be good for us, otherwise there will be huge problems.
Unemployment is a huge issue because our business units have faced a lot of losses.
A factory, shops or manufacturing units which were employing 50 people, are now using only 25% of that strength. We want that every business unit should be able to capitalise 100% so that they engage more and more people. For that we have asked the government for a comprehensive business package.
Let’s hope this summer and spring bring more business to our local economy.