Karnataka’s Bengaluru experienced a city-wide shutdown due to farmer protests against the release of Cauvery water to Tamil Nadu. These protests have garnered support from opposition parties, including the BJP and AAP, as well as pro-Kannada groups. Furthermore, pro-Kannada organizations have announced another bandh scheduled for September 29.
Source: The News Minute
According to certain sources, industry groups like the Karnataka Employers Association (KEA) and the Karnataka Chambers of Commerce and Industry (FKCCI) anticipate that the two-day shutdown will result in a significant financial loss for the state of Karnataka, estimated at around Rs 4,000 crore. Ramesh Chandra Lahoti, the President-elect of FKCCI, pointed out that even a single day of closure by the trading community leads to a loss of approximately Rs 100 crore in GST revenue for the state. When this impact is multiplied across all sectors of economic activity, the financial consequences become substantial.
Source: The Economic Times
Industry organizations are strongly emphasizing that these shutdowns have the potential to severely damage the economy and impede its progress toward reaching the milestone of becoming a $1-trillion economy. BC Prabhakar, who serves as the president of KEA, expressed that bandhs negatively impact people’s livelihoods and should not be considered as a solution for any issue, whether it’s based on sentiment or politics. The FKCCI further highlighted that a business entity would require a minimum of one week to recover from the financial losses incurred due to just a single day of closure.
Source: The Quint
The Hotelier’s Association, which provides employment to nearly 10 lakh people directly or indirectly, anticipates a significant loss of Rs 100 crore in excise duty due to these disruptions. PC Rao, the President of the Bengaluru Hotelier’s Association, explained that unlike some industries that can restart operations and recover losses quickly, the revenue generation in the hotel industry occurs on a daily basis, making it challenging for hoteliers to bounce back. In a separate development, the Ola-Uber Drivers’ Association has pledged its full support for the bandh scheduled for September 29 by pro-Kannada organizations. However, they have chosen not to endorse the strike scheduled for September 26.
