Farmers Agitation Causing Rs 500 Crore Economic Loss Daily in Northern States

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The PHD Chamber of Commerce and Industry (PHDCCI) has expressed concerns over the ongoing farmers' agitation in northern India, warning of severe consequences for trade, industry, and employment in the region. According to PHDCCI President Sanjeev Agrawal, the prolonged agitation could result in daily economic losses of over Rs 500 crore and adversely affect the Gross State Domestic Product (GSDP) of Punjab, Haryana, and Delhi in the fourth quarter.

Impact on Micro, Small, and Medium Enterprises (MSMEs)

Agrawal highlighted that the agitation is particularly detrimental to the businesses of Micro, Small, and Medium Enterprises (MSMEs) in Punjab, Haryana, Delhi, and parts of Uttar Pradesh and Rajasthan. These MSMEs heavily rely on raw materials procured from other states to execute production processes and meet consumer demand. The disruption in the supply chain due to the agitation is severely impacting their operations.

Combined GSDP and Employment

The combined GSDP of Punjab, Haryana, and Delhi is estimated at Rs 27 lakh crore in 2022-23 at current prices. These states are home to approximately 34 lakh MSMEs, employing around 70 lakh workers in their respective factories. The agitation poses a significant threat to the livelihoods of these workers and the overall economic well-being of the region.

Affected Economic Activities

Agrawal emphasized that the continuous farm agitation is disrupting the supply of essential raw materials to various industries, leading to severe impacts on economic activities such as food processing, cotton textiles, garments, automobiles, farm machinery, information technology, trading, tourism, hospitality, and transport. The disruption in these sectors could have far-reaching consequences for the economy of the northern states.

Call for Resolution

The PHDCCI urged both the government and the farmers to find an early resolution to the ongoing issues, prioritizing the welfare of all stakeholders in the country. A common consensus is crucial to mitigate the economic losses and ensure the sustained growth and prosperity of the northern states.