Impact of terrorism on

Indian Economy

Terrorism is destruction of people or property by people not acting on behalf of an established government for the purpose of redressing a real or imaginary injustice attributed to an established government and aimed directly or indirectly at an established government.

Meaning :

Causes:

Poverty could cause conflict; conflict could then lead to more poverty – circular

Therefore peace consolidation important and avoidance of recurrence of conflict

Three economic characteristics appear to make a country more prone to conflict –

– low per capita income – overall economic decline – dependence on primary commodities

Economic & Social Cost:Resources diverted from productive activities to destruction- A double loss

Value of lost production- Instead of repairing roads & expanded agriculture production, govt. recruits more soldiers & buys weapons and ammunitions.

Cost of repairing destruction- Roads that were damaged by tanks and destroyed by bombs, must be rebuilt before they can work again.

CASUALTIES AND LOSSES

WAR INDIA PAKISTAN

INDO-PAKISTANI

WAR OF 1965

3,264 KILLED

3800 KILLED

INDO-PAKISTANI

WAR OF 1971

3,843 KILLED

7900 KILLED

KARGIL WAR

527 KILLED 357 - 4,000

KILLED

COST OF PREPARING FOR WAR(2001-02)

INDIA PAKISTAN

TROOPS DEPLOYED

7,00,000 3,00,000

COST INCURRED

$600m $400m

TOTAL COST

$1.8bn $1.2bn

Terrorism is holding back Indian Economy…

Short term impacts:  Investor BehaviorLoss of Human Capital Short Term Financial Loss Retrenchment effect on Specific Industries

Long term impacts: Political Instability Global Implications Long Term Financial Loss

India ranks 6th among terror affected countries…

…with over 4,100 such incidents recorded in the past 34 years, according to an international database on terrorism.

India was witness to 4,108 terrorist incidents between 1970 and 2004, in which 12,539 people have been killed.

The fatalities show an average of 360 deaths per year due to terrorism in India. These fatalities peaked in 1991 and 1992 when 1,184 and 1,132 individuals were killed," the database said.

The database further revealed that the terrorists in India have launched various types of attacks. While 38.7 per cent of terrorist events were facility attacks, 29.7 per cent per cent were bombings in which the intent was to destroy a specific facility and 25.5 per cent were assassinations.

MUMBAI @ 26/11

Total loss- Rs. 4000 cr.Deaths- 179 people, including 22 foreigners & 6 americns.

Around 50% drop in occupancy rate.

Estimated drop in no. of foreign tourists to India- 30 to 40%

In the first weekend after 26/11, Pantaloon (Mumbai) observed 4.2% fall in overall sales.

Multiplexes in Mumbai suffered 20% drop in seat occupancy.

Take the following steps and fight fear of terrorism with personal empowerment…

1.Learn. :What is suspicious activity? People performing surveillance (taking pictures, notes, videos, or asking odd questions)

People retrieving or disposing of items in a body of water

Abandoned vehicles or vessels in odd locations

Small planes flying over sensitive areas Damaged lighting or fencing near sensitive areas

Remember that you are the best judge of what is unusual in your area. Be observant, and don't be afraid to --

2. Act: Call your local police. Tell the operator that you would like to make a suspicious activity report pertaining to Homeland Security.

3.Trust:  Provide your contact information so that if officials have any questions they can call you and take appropriate action in a timely manner. Don't rush to judgment; trust officials to take appropriate action while keeping your identity confidential.

Thank You…