A slow road to recovery

The aftermath of the April–May disturbances has left Jammu and Kashmir’s economy in a fragile state, and the latest figures on rehabilitation offer little comfort. Of the 64,029 business units officially identified as disturbance-affected, only 7,752 have been covered under the relief package so far. That is barely twelve percent, an alarming statistic for a region where small and medium enterprises form the backbone of livelihoods.

The April 22 attack in Pahalgam and the escalated tensions that followed triggered a chain reaction across key sectors. Tourism crumbled overnight, transport and hospitality were hit in tandem, and the effect quickly percolated down to retail, handicrafts and local services. The ripple effects continue to be felt more than seven months later.

The relief framework, designed with urgency in mind, has struggled to keep pace with ground realities. Banks were expected to complete the rehabilitation process by early November, yet the numbers reveal a yawning gap between policy and implementation. Several institutions have managed to rehabilitate only a fraction of their affected accounts; some have not been able to extend relief to a single borrower despite substantial exposure. The total relief disbursed so far, Rs 494 crore against an affected exposure of over Rs 5,000 crore, underlines the widening imbalance.

Businesses, especially the smaller ones, operate within tight margins even in stable times. For them, each passing week of delay translates into mounting debt, and unpaid workers. The promise of rehabilitation is meaningful only when it is timely, efficient and accessible. .

The region has endured repeated cycles of disruption over the years, but the current economic shock arrives at a particularly vulnerable moment. After a period of revival, the tourism sector is again struggling to regain its footing. Similarly young entrepreneurs, artisans and service providers who had found a conducive climate to grow in recent years now find themselves back in uncertainty.

This is where the role of the government comes in. The region’s economic recovery now hinges on a swift, and compassionate action. The government should intervene with stronger facilitation, closer monitoring and, where necessary, additional support. Too many livelihoods are at stake for the process to remain this slow.