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Jat Reservation Agitation -2016
Northern states to face Rs. 34,000 crore loss of economic activity due to Jat stir
PHD Chamber of Commerce and Industry Estimate
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Babushahi Bureau
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Chandigarh, February 22,2016 :Northern states to face Rs. 34,000 crore loss of economic activity due to Jat stir .Disclosing this here today, Dr. Mahesh Gupta, President, PHD Chamber of Commerce and Industry said there is a huge loss of the economic activity not only in the state of Haryana but across the Northern States of India. As supply of the essential items has been severely impacted, we cannot rule out the impact on inflation, added Dr. Mahesh Gupta. Based on inputs received from various industry stakeholders across the states, we estimate that these states may face Rs. 34,000 crore loss of economic activity due to Jat agitation during the last few days, said Dr. Mahesh Gupta. Disruption in overall transportation activities including railways, roads, passenger vehicles, goods vehicles, drop down in tourists arrivals, loss in financial services, hit to the industrial sector including manufacturing, electricity, and construction; the overall activity has choked and may result in a huge loss in the GSDP of states for the last quarter of FY15-16, said Dr. Mahesh Gupta. Loss of Economic Activity so far Economy and Industrial Ingredients Economic Impact (Rs. Crore) 1. Loss to the services activities including tourism services, transportation services majorly rails and roadways and financial services. 18,000 2. Loss to the industrial and agri business activities including manufacturing, electricity, construction activities, damage to food articles. 12,000 3. Damage to infrastructure including damage to roads, restaurants, bus stands, railway stations, among others 4,000 4. Total loss of Economic Activity 34,000 Source: PHD Research Bureau He said that Anticipated loss has been calculated for the northern states including Haryana, Punjab, Delhi, Chandigarh, Rajasthan, Uttarakhand, Uttar Pradesh, Jammu and Kashmir and Himachal Pradesh All the northern states of India including Haryana, Punjab, Delhi, Chandigarh, Rajasthan, Uttarakhand, Uttar Pradesh, Jammu and Kashmir and Himachal Pradesh contribute at around 32% in India’s GSDP. Since about 550 trains have been dismissed due to agitation and also flow of tourists and passengers movements have been impacted, the contagion effect can further have impact on economies of the states other than the Northern States of India. "We believe that the northern states would take measures for the smooth functioning of the economic activity and would restore the essential services in their respective territories," said Dr. Mahesh Gupta.
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