The terrorist attack in Pahalgam, Kashmir, which resulted in the deaths of 26 tourists, has led to significant repercussions across various sectors.
Pakistan opposes peace and development in Kashmir as it seeks to perpetuate unrest and undermine India’s sovereignty over the region. India believes that a stable and prosperous Kashmir, benefiting from education, industrialisation, and employment opportunities like the rest of the country, would fully integrate with the nation, rendering Pakistan’s claims irrelevant. By sponsoring cross-border terrorism and radicalising youth through propaganda, Pakistan aims to disrupt progress, derail tourism (a vital economic sector), and fuel communal tensions.
From India’s perspective, these actions are part of a deliberate strategy to keep Kashmir unstable and in global focus, despite it being an internal matter.
The terrorist attack in Pahalgam, Kashmir, which resulted in the deaths of 26 tourists, has led to significant repercussions across various sectors. Pakistan’s desire to foment unrest and setbacks to progress has been achieved through the terrorist attack it orchestrated through its proxies.
Tourism Industry Disruption
- Closure of Tourist Sites: 48 out of 87 government-authorised tourist resorts in Kashmir have been closed as a security precaution.
- Mass Cancellations: Over 1 million tourist bookings were cancelled in the days following the attack, with April–June being peak tourist season.
- Economic Impact: Estimated losses to the tourism sector exceed Rs 1,000 crore (~USD 120 million) in just two weeks.
- Livelihood Crisis: Over 70% of the local population in districts like Anantnag and Baramulla depend directly or indirectly on tourism; hotel staff, pony owners, shikara operators, and handicraft vendors are reporting zero income post-attack.
Stalling of Major Investment Projects
- Emaar Group’s FDI Project: The UAE-based Emaar Group’s Rs 500 crore investment in the ‘Mall of Srinagar’ and associated multipurpose towers, expected to create over 10,000 jobs, faces uncertainty amidst heightened security concerns.
- International Investment Proposals: Foreign companies like Noon.com, Al Maya Group, GL Employment, and MATU Investments have submitted proposals, but the current instability may delay or deter these investments. Impact on Domestic Investment Initiatives
Ongoing Investment Projects Under Execution
- Investment projects worth Rs 25,000 crore are currently under execution in Jammu and Kashmir.
- These projects span various sectors, including industrial development, healthcare, and infrastructure.
- Approximately 1,767 proposals have been approved, involving investments of Rs 24,729 crore.
- Investment Proposals in the Pipeline: The Jammu and Kashmir government has received over 8,500 applications with investment proposals totalling Rs 1.69 lakh crore. These proposals are expected to generate employment opportunities for over 6 lakh individuals.
- New Risks in Investment: An additional Rs 50,000 crore in proposals are being processed. The attack has introduced new risks, potentially slowing down these initiatives.
- Investor Confidence: The perception of instability may cause domestic investors to reassess or postpone their investment plans in the region.
Potential Risks and Delays Post-Attack
- The Pahalgam terror attack has raised security concerns among investors. potentially leading to delays in project execution and reconsideration of investment plans.
- The heightened security situation may affect the timely implementation of ongoing projects and the approval process for new proposals.
Employment and Economic Development Concerns
- Job Creation at Risk: The anticipated employment opportunities from these investments, crucial for local economic development, are now uncertain.
- Economic Slowdown: The disruption in tourism and potential delays in investment projects could lead to an economic slowdown in the region, affecting livelihoods and growth prospects.
Impact on Local Population
- Security Measures Intensified:
- Increased Crackdown on Terrorist Network: Security forces have launched extensive crackdowns, detaining nearly 2,000 individuals and demolishing homes of known terrorists.
- Enhanced Surveillance: Authorities are implementing stricter security protocols to prevent further attacks, including increased patrolling and surveillance in sensitive areas, which may lead to inconvenience to locals.
- Fear and Uncertainty: The local populace is experiencing heightened fear due to security crackdowns and the potential for further violence.
- Economic Hardship: With the decline in tourism, many locals who rely on this sector for their livelihood are facing economic difficulties.