Video Editor: Mohd Ibrahim
The Modi govt on Monday, 5 August, effectively revoked Article 370 that gave special powers to the state of Jammu and Kashmir. But how will this move impact business in Jammu and Kashmir and how will the stock market react to it? Market expert Sameer Kalra weighs in.
In an exclusive interview to The Quint, Kalra said revoking Article 370 will have positive long-term and medium-term impacts on the business environment. The move, however, will adversely impact short-term businesses. The agricultural output from J&K could face the brunt of this move.
“There are no big industries in Jammu and Kashmir. So, apart from the agriculture sector, there will be no adverse impact on the commercial, industrial sector or any other sector.”Sameer Kalra, Market Expert
Will this move financially benefit J&K?
GDP of Jammu and Kashmir is $17 million. In 2006, the GDP was $8 million. So, in 12 years, the GDP in Jammu and Kashmir has only doubled. The rest of the country has seen a GDP growth of at least 200%. So, revoking Article 370 will have positive impact on business in the Jammu and Kashmir.
If there is commercial development, Jammu and Kashmir will see a growth in the next 10 years. Currently, Jammu and Kashmir is ranked 22nd in terms of GDP.
How are foreign investors interpreting the move?
Revoking Article 370 will create a huge consumption pattern in Jammu and Kashmir because foreign investors will be able to invest here. Consumer companies will be able to grow.
On 5 August, the Rajya Sabha passed the Jammu and Kashmir Reorganisation Bill 2019, which proposes to bifurcate the state into two union territories – Jammu and Kashmir, and Ladakh.
(At The Quint, we question everything. Play an active role in shaping our journalism by becoming a member today.)