Kashmir trade, hospitality sectors bruised by West Asia tensions; ceasefire sparks recovery hopes

Srinagar, Apr 8: The ceasefire between the United States of America and Iran has come as a breather for the business community in Jammu and Kashmir, with trade bodies and exporters expressing cautious optimism after weeks of economic uncertainty triggered by the West Asia conflict.

President of the Kashmir Chamber of Commerce and Industry, Javid Ahmad Tenga, said the Chamber welcomed the ceasefire, describing it as a much-needed step towards restoring stability.

“We welcome the ceasefire between the United States and Iran, with a hope that the development will ease geopolitical tensions and restore economic stability across regions impacted by the conflict,” Tenga said.

He noted that conflicts in West Asia have cascading and far-reaching economic consequences. “Jammu and Kashmir has not remained immune. The recent tensions adversely affected trade flows, disrupted supply chains and dampened overall business sentiment,” he added.

Highlighting sector-specific impacts, Tenga said exports from Kashmir witnessed a noticeable decline during the period of heightened tensions. “There were delays in shipments, uncertainty in international markets and rising logistics concerns. Export-oriented sectors, especially handicrafts and horticulture, faced the brunt,” he said.

The Chamber also flagged operational challenges within the domestic economy. “Issues related to the supply of commercial LPG to hotels and restaurants created additional strain on the hospitality sector, which is already in a fragile recovery phase,” Tenga added.

Tourism, a key driver of the region’s economy, also took a hit. Industry stakeholders reported a dip in bookings and rising cancellations as global uncertainty weighed on travel sentiment. “Even a perception of instability in the broader region impacts tourist confidence. We saw hesitation among travellers and some cancellations during the peak period,” said a hotelier in Srinagar.

Exporters on the ground echoed these concerns. “The conflict created uncertainty in overseas markets. Buyers adopted a wait-and-watch approach, which slowed down orders,” said a handicrafts exporter from Srinagar.

A fruit trader dealing in apple exports said logistical disruptions added to the pressure. “Freight costs were volatile and shipments were delayed. Even small disruptions affect perishables significantly,” he said.

Another exporter noted that currency fluctuations also played a role. “The weakening of the rupee and rising input costs made it difficult to maintain margins during this period,” he added.

KCC&I said the cumulative effect of these factors led to subdued business sentiment across sectors. “Entrepreneurs were cautious, investments slowed, and market activity was impacted due to uncertainty linked to global developments,” the Chamber said.

Emphasising the importance of sustained peace, Tenga said, “The business community sincerely hopes that this ceasefire will not be limited to a brief period but will pave the way for enduring peace, which is essential for economic recovery and growth.”

He added that long-term geopolitical stability in West Asia remains critical for regions like Jammu and Kashmir. “Our economy is closely tied to external trade dynamics and remittances. Stability in that region directly influences our economic outlook,” he said.

Reiterating its position, KCC&I said lasting peace would help restore confidence among businesses, revive trade momentum and ensure smoother supply chains. “We are hopeful that this development marks the beginning of a more stable and predictable environment for businesses to recover and grow,” Tenga said.