TERRORISM IS HOLDING BACK false

INDIAN ECONOMY

World in recent past, has witnessed several economies burning with disaster & crisis. Today every nation faces
some or the other economic, social or communal unrest. Further, globalization has enabled the impact of these
tremors to be felt even at remotest part of the world. India till FY 2008 had seen a steady growth with its GDP
shining as high as 9.3%. Subsequently, the economy was hit with US Sub Prime Crisis, Satyam scandal & the
Mumbai 26/11 Terrorist attacks.

Many believe that terrorism can't hamper ones economic activity as it only destroy a small fraction of the stock
of capital of a country. However, a broader look at the geo-political & economical scenario can easily erode this
misconception. India has been facing the terrorism threat as long as since 1970. Terrorism in India is primarily
attributable to Islamic, Naxalite and various other radical movements. At least 232 of the country’s 608 districts
were afflicted, at differing intensities, by terrorism. Over a period of time terrorism has severely affected Indian
economy. Following are the issues that had been major hindrance for Indian economic growth:

A] SHORT-TERM IMPACT

1) Loss of Human Capital

The human costs have been horrendous. Estimates are in past 5 years 4000+ were killed in terrorist attacks.
This puts India next to Iraq both in terror deaths and terror incidents. The recent 26/11 Mumbai attacks itself
left 257-300 dead and 700 injured which includes several high profile individuals such as Shri Ashok Kapur,
chairman of Yes Bank who was killed in attack.

2) Investor Behavior
Frequent attacks on commercial & government institutions shatter the confidence of the investors causing
heavy investment drainage. One example of the same is the terrorist attack in Indian Parliament in 2001, which
internationally provoked insecurity & discouraged the investors (FII's & FDI's), obstructing the economic
growth. A heavy impact of this can be observed at the stock market that keep diving down post any major
terrorist event.

3) Short Term Financial Loss

In short term the obstacles like loss suffered due to the diversion of business away from the city to other
locations, lost earnings of public due to disability and trauma among survivors etc. drains out the productivity
levels & impact the respective economy adversely. Post 26/11 the Taj & Trident Hotels incurred heavy loss as
operations were halted for 3-4 months. After 26/11 Mumbai attack Pak cricket team had to cancel its Mumbai
tour due to which BCCI has incurred a loss to the tune of INR 120 crore. Another such incident was Post Ex-
PM Indira Gandhi's assassination 1984 riots which hit the economy severely especially the Agriculture &
Transport industry that lost hundreds of crores.

4) Retrenchment effect on Specific Industries

The Jaipur serial blasts, J&K Terrorism & Mumbai 26/11 attacks did have immediate and concentrated impacts
on a number of industries: most notably, airlines, aerospace, travel, tourism, insurance, lodging, restaurants,
recreation and related activities. Gross earnings from foreign tourists are currently around 1% of GDP. Post
26/11 terrorist attack estimates suggest that nationally hotels have seen about 60% booking cancellations. Hotel
occupancy in western India is down some 25% and rates have plunged. These industries suffered concentrated
economic and job losses. Of course, regions or localities with heavy concentrations of these industries suffered
disproportionately as well.
B) LONG-TERM IMPACT

1) Political Instability
The assassinations of 2 Ex-PM of India, Mrs. Indira Gandhi, Mr. Rajeev Gandhi already had jolted Indian
politics & economy at large. India had lost 2 of its strongest pillars which otherwise would have taken Indian
politics, Business & industry at unimaginable heights. Recently speaking the siege of South Mumbai has taken
toll as home minister Shivraj Patil, Chief minister Vilasrao Deshmukh & Home minister R.R. Patil had to
resign. This further unstabilized the Indian industry from a long-term perspective. The Political instability at
times have also let to erosion of FII's & FDI's.

2) Global Implications
India, post Kargil war then Attack on Parliament now 26/11 has lost millions of business as the trade link
between the two countries are frozen during such period. Agri-Exporters in bordering states have taken heavy
burns. This has resulted in unemployment in these regions, which in turn again triggers riots. 26/11 Attack
involved foreign hostages and places where business leaders, executives and foreigners frequented. This will
lead to a drop in investments.

3) Long Term Financial Loss

The direct economic damage done by terrorist attacks: buildings and infrastructure destroyed, productive lives
ended. The structural damages post 26/11 attacks was amounting to total of INR 500 crores, which
subsequently took its toll on the insurance industry. Another form of longer-term costs security involves the
opportunity cost of spending additional money to fight terrorism. Currently India ranks on 9th position in the
world for highest military expenditure (2009-10), which amount to sum total of USD 32,700,000,000. Further,
a variety of new spending on security occurred after this incident. As all this happens, economic resources will
be directed to shoring up security and diverted away from more productive private sector activity.

To conclude with, lets not forget that the enemies of our nation have vowed to "bleed India through thousand
cuts". Even if terrorism represents a small fraction of the overall economic risk in India, it may have a large
impact on the allocation of productive capital across the country. In any part of the world terrorism is unwanted
as it not only kills the human life but also the infrastructure, industry ultimately shackling its overall growth.
About the Author:

false

While the initial effect of terrorist activities is restricted to the deaths it causes, the long-term effect is what hurts
a country the most. Terror is always a tool to disrupt the economic and social fabric of a country. Post 26/11,
there was a lot of speculation as to whether foreign companies would think twice about investing in India.
Quote:

While the initial effect of terrorist activities is restricted to the deaths it causes, the long-term effect is what
hurts a country the most. Terror is always a tool to disrupt the economic and social fabric of a country. Post
26/11, there was a lot of speculation as to whether foreign companies would think twice about investing in
India.

This is the really true thing. all companies will think a lot that to invest in india or not and the tourism is also less
because of the terrorist attack. i think the goverment should increase the security. and they also should do
something to give proper punishment to terrorist
According to Swaminathan Aiyar, India is once again being bracketed alongwith Pakistan. For example, to the
Westerners, it is not just Pakistan which is a dangerous country. They think a million times before visiting India.
And the Indian government is not doing much to boost confidence. An example of this is the Indian
government's claim that it would be unable to provide adequate security for the IPL because the elections would
be on. Is that how a country vying to be recognized as a superpower should be behaving? South Africa, which is
notorious for its high rate of crime, is also having its elections. But that has not stopped the country from hosting
the IPL. It's a slap on the face of the Indian government.

During the Bush administration, it looked like India was well on the way to being "de-hyphenated" from
Pakistan. The rising economy of the country also made it a serious contender to overtake China's amazing
growth rate. But now, thanks to its pathetic response to terror-strikes within its soil, India is once more
"hyphenated" with Pakistan. There is no doubt that terrorism is taking its toll on the economy of the country.

External terrorism is fine but what about our internal terrorists viz. our ministers who are sowing the seeds of
communal disharmony? Aren't they equally despicable??? I think we should rout them out first!!

Quote:

External terrorism is fine but what about our internal terrorists viz. our ministers who are sowing the seeds of
communal disharmony? Aren't they equally despicable??? I think we should rout them out first!!

Yes.. there are so many internal issues that are need urgent action, the Naxal issue for instance, efforts should be
made to resolve the disputes amicably. If talks fail then state & central govt. must act at firmly. Naxals unlike
Islamic terrorist, are more well coordinated, have access to arms & ammunition and above all enjoys sympathy
of local public. The political parties in there bid to punch down naxl threat created the so called "Ranbir Sena" a
self-declared army of wealthy to take arms against the Naxal (dalits), which complicated the issu further. naxal
activities have boosted again in past few days but sadly no one (media/Govt./Public ) is taking / talking abt this
'internal war' as strongly as 26/11 was taken.

My understanding is if political will is strong enough then such issues like naxal, wont incarnate at first instance.
The poison of political corruption is slow & mild but when you fully realize the extent of damage, its usually too
late & painful. Corrupt politicians are like Parasite, they wont kill there host (Public), who are source of food &
shelter for them but rather feast on its wealth, weakening its growth & drying it up day by day.

26/11: an economic perspective - Document Transcript

1. 26/ 11 : its economic perspective:- Is India really affected by it?
2. Mumbai attack and its aftermath T he recent terrorist attack on Mumbai is being called
India's 9/11. In sheer audacity of design, that is true. The US, whose mainland has never
been attacked, could not have imagined that a set of planes could be transformed into
enormous bombs. Nobody in India thought of a sea-borne invasion of Mumbai- the
 attackers are said to have hijacked a fishing trawler, steered it towards the Mumbai coast
and then landed on motorised dinghies. Not just out-of-the box thinking but meticulous
execution has been in evident in both the cases. The Taj burning as a result of a series of
blasts inside the building In 9/11, the attackers targeted the World Trade Center, beloved
symbol of
3. America's financial capital. In the Mumbai attack, the targets were two high-profile hotels
and a Jewish centre in India's financial capital. The objective was the same: to cause
dislocation and mayhem in leading financial centers in ways that would capture the
world's attention. Smoke billowing out of the WTC is one image that is etched in our
minds; so will that of the Taj Hotel in flames. The Mumbai attackers have certainly met
their objective. 9/11 changed America. Unilateralism and the doctrine of 9/11 changed
America. pre-emption became central to American foreign policy. There was the bombing
of Afghanistan and invasion of Iraq thereafter. Also less noticed transgressions of
international law such as a missile attack on Sudan, the bombing of a suspected nuclear
site in Syria and missile and bomb attacks on terrorist hideouts in Pakistan. The US has
made clear that it will not be bound by the UN or international law when it comes to the
protection of its interests. The US has also gone after terrorists in several countries and
spirited them to other locations for interrogation and incarceration. It did this in Italy a few
years ago- an Imam was
4. seized by CIA operatives. An Italian judge has issued arrest warrants for the CIA
operatives, a warrant that has no chance of being enforced. Within the US, the full
financial might and technological capability of the country has been brought to bear on
preventing infiltration of terrorists. The issue of visas has become more stringent, there is
far greater scrutiny of visitors (including strip searches) at airports, stepped up
surveillance at home and abroad and an abridgement of civil liberties under the Patriot
Act. These have ensured that no terrorist attack has occurred in the US after 9/11. There
have been comparable measures in the UK after its own 7/11. Surveillance through closed
circuit TV is so pervasive that the Orwellian prediction of 1984 seems to have come true in
the UK. On top of this, tapping of phone calls and monitoring of email has been stepped
up- the American journalist Seymour Hersh has said that he would never use pay phone in
the UK because there was little chance of the call being confidential. One other country
that has had success in the war of terror- in the sense of limiting attacks on its soil- is
Israel. But Israel is unique. Not only can it pour huge financial and technological resources
towards securing itself, it is willing to use the most draconian methods. A whole wall has
been created between Israel and the occupied territories and entry through it into Israel
tightly regulated. Palestinians have been beaten into quiescence in the most brutal ways.
Above all; there is the intense determination of the Israeli people, military conscription for
all young people and the fact that Israel is a small country. Where does India stand after
the Mumbai attack? One, there is no question that security measures in key places,
including hotels, will be at a higher
5. level hereafter, causing no small inconvenience but that is something that people will
come to accept. Two, it's hard to see how the pressure to enact tougher terror laws can be
resisted- even PM Manmohan Singh had to mention this in his address to the nation after
the attack. This does mean a certain curtailment of civil liberties. Three, there will be
profiling of communities and a crackdown on suspects within these. These will create more
alienation and hence a greater susceptibility to domestic terrorism. Will terrorism decline
in India in response to strong-arm measures as happened in the US and Israel? One must
be sceptical. We do not have comparable funds or technology but that is not the only
problem. We must reckon with the country's size and diversity. Above all, there is the
problem of corruption and poor governance. Key institutions of the state, notably the
police and the judiciary, suffer from both corruption and poor governance. Strong anti-
terror laws, in such a situation, will simply become weapons for persecution and extortion.
Vulnerability to terrorism, it is worth pointing out, is an aspect of corruption and an
indifference to the rule of law. The political class will not prosecute or pursue high-profile
cases of terrorism; businessmen will maintain links with the underworld; the police is more
 concerned with collecting bribes than with maintaining law and order; the media has no
qualms about lionising celebrities who have been convicted in important cases. When a
political party moots the idea of giving a Lok Sabha seat to the key suspect in the
Malegaon case, which is confirmation that India in many ways has the traits of a banana
republic.
6. Without an overhaul of governance, without greater accountability, it is hard to see how
terrorism can be fought effectively. It is the democratic process and the rule of law that
need to be strengthened for these to happen. Unfortunately, the knee-jerk reaction to
heightened terrorism is in the opposite direction- the abridgement of liberties, greater
powers to the police, contempt for politicians and the political process. On TV, I saw a
bunch of ad-men pouring scorn on politicians and asking them to keep their hands off the
law- enforcement machinery. That is a prescription for fascism. The gloomy conclusion
that emerges is that India will try to emulate the tough methods adopted by countries
such as the US and Israel without having the commensurate governance or enforcement
capability. This can only lead on to a downward spiral where terrorism is concerned.
7. 26/11 a deliberate plan to hit Indian economy Remembering the Martyrs Hours before
Islamabad publicly admitted to terror emanating from its soil, President Pratibha Patil said
here on Thursday that India expected Pakistan to take “decisive and credible action”
against all terror groups operating from its territory. In her customary address to a joint
sitting of Parliament, Patil called the attack in Mumbai as a deliberate plan to retard India's
economic progress and pointed that terrorists from Pakistan have continued to attack
India despite
8. solemn commitments made by Islamabad that it will not allow its territory to be used
against India in any manner. In her more than hour-long address, the President also
touched upon the global economic downturn but expressed confidence that the Indian
economy would grow at a relatively high pace of 7.1% in the current financial year.
Recounting the record of the government in the last nearly five years, Patil said looking
back, we see hope. We have not only withstood the challenges but also emerged stronger.
Cautioning that the nation faced multiple internal security challenges, the President said
the country witnessed terrorist attacks in several cities with growing levels of
sophistication and assistance from outside the country. “Several innocent lives have been
lost. The terrorist attacks in Mumbai as well as the terrorist incidents in Delhi, Ahmedabad,
Hyderabad, Jaipur, Bengaluru and Assam and before that on our embassy in Kabul were an
assault on all the values that our country stands for,” she said. Asserting that one of the
landmarks achieved by the government was the signing of Indo-US nuclear deal, she said
that India now looked forward to working with the new Obama administration to the
mutual benefit. Touching on economy, the President said government’s policies have
ensured that even as India
9. faces an economic slowdown along with rest of the world, its fundamentals are much
better. The President said India’s domestic demand could inject fresh momentum to the
economy while the Indian banks were well capitalised and faced no threat that many of
their counterparts faced in other parts of the world. Referring to the economic stimulus
measures taken by the government, Patil expressed confidence that they will drive the
demand for goods and services, reviving production activities in the manufacturing as well
as services sectors. Even in the prevailing adverse global economic environment, she
hoped the Indian economy would still register a relatively high growth rate. The President
said the sharp increase in global commodity prices, especially those of petroleum and
food, have an adverse impact on the economy....
10.The Impact of 26/11 on the Indian Economy Before analyzing the impact of the Mumbai
terror attacks on India’s economy, we must understand how 26/11 was different from any
other terror attack on the country. God Helps Those Who Help Themselves 1. There is no
denying that the attacks were the most audacious of its kind ever in India. But this
assessment of the tragedy is based more on the way it was executed, than on the actual
number of victims it claimed.
11.2. If you jog your memory back to the serial bomb blasts in Mumbai, 1993, where about
250 people were killed, you will realize that the city has witnessed tragedies of this
magnitude before. 3. However, the attacks were unique, in a rather dubious way, as it was
perhaps the first instance where a small group of highly motivated terrorists held an entire
nation and its defence forces to ransom for over three days. 4. Coming at a time when the
world was experiencing economic turbulence, it triggered fears that the Indian economy
would be adversely affected. The last point is of particular significance in these difficult
times. Should an atrocity like 26/11 essentially have a negative impact on the economy?
As it turns out, this is not the case. The impact could have been termed negative, had the
following cases been true: 1. First Case: There was heavy foreign investment in India in
the months before the attacks. 2. Second Case: Foreign investment showed a dramatic
decline following the tragedy. Let us examine the first case:
12.1. The first case is certainly not true. In the wake of the global economic crisis, foreign
institutional investors (FIIs) were tripping over each other in their hurry to pull money out
from the Indian markets in the months before the terrorist attacks. 2. In the process, they
pulled the rug from under the feet of the sensex, sending it crashing nearly 12,000 points
in eleven months. Let us now examine the second case: 1. Even as the attacks were
unfolding in Mumbai, the markets were witnessing something totally unexpected. Instead
of a massive outflow of funds from the Indian markets, money was actually flowing in. So,
the second case is also not true. As you can see, the impact was actually favourable. But
how did this miracle happen? As S.A.Aiyar points out in his column in the Times of India,
the answer is fairly simple. The FIIs saw a big opportunity to buy shares and invest in
equities when the market was low. When the markets reopened a couple of days later, the
sensex actually registered a gain. It has kept up this trend ever since. The events worked
in India’s favour in other ways too. US intervention has forced Pakistan to crack down on
terror outfits operating out of its territory. With the possibility of a confrontation between
India and Pakistan waning, this can only have a positive effect on the Indian economy.
13.Anyone who hoped to shake the foundations of the Indian economy with this act of terror
must be feeling very foolish indeed. However, it would be wrong to say that the attacks
had no impact whatsoever on the Indian economy. 1. It affected tourism and hotels, with
many tourists cancelling bookings. 2. The global economic crisis had already hit tourism
and 26/11 only made things worse. But tourism contributes a very small part of the GDP. It
is not something that will seriously impair the progress of the economy.
14.26/11 and after effects on tourism in India Incredible !ndia no matter what It was exactly a
year ago the gateway of India - Mumbai was under the siege of terrorists. 26/11 in 2008 is
a day of horror in the minds of Mumbaites. The World saw the terrorists’ activities and the
commando operations live on many channels. The burning picture of Taj Hotel symbolizes
the terror unleashed in the Mumbai coast. The 60 hr long battle saw the terrorists
galloping at-last and equally with great sacrifices of Indian warriors. More than 160 people
lost their lives and few hundreds were injured.
15.Mumbai Terror Attacks On this day, the great Indian symbols were attacked. Gateway of
India, Taj Mahal Palace, Oberoi Hotel and Nariman House were some of the important
monuments attacked by the terror networks. It was not the first time these patriotic
monuments were aimed by miscreants. The terrorist bomb attack on August 25, 2003 near
the Gateway of India killed nearly 50 people and left hundreds injured. Tourism Industry
The monuments were damaged, the lives of many were shattered and many
establishments were under threat. 26/11 affected the life of common man all over the
country, especially in major urban cities like Delhi, Bangalore, Kolkata and Chennai apart
from Mumbai. All ways of life were affected. Travel and tourism was also not an exception.
It was a major casualty. 26/11 in 2008 had happened just at the beginning of the India’s
best tourist season in the decade. It was expected to cross the great landmark of 5 million
foreign travellers in the year. 26/11 became the bottleneck for the miraculous growing of
tourism industry in India. In fact the tourism sector was not sound enough to absorb such
an impact as it was already affected by the economic meltdown. Inflow of foreign
 travellers was reduced and local tourists avoided big cities. Mumbai especially saw the
significant reduction in the number of tourists in the first three months after 26/11. The
major casualty is the tourism ministry’s
16.projection of 10 million tourists by 2010. It is perceived that the target would be difficult to
achieve! However, the concentrated efforts of industry and the Government are now
bringing fruits. They could mobilize voices of many world-wide agencies like National
Geographic to endorse and assure safe tourism in India for the travelling community and
promoted India as a must see destination. Thanks to the confidence building measures
and the great support by the Government machinery, Indian tourism regained its lost glory
by mid of 2009. Terror Tourism! At the other end, Mumbai has seen the arrival of a new
set of tourists. Travellers flock to this place to view the monuments like Taj hotel, Gateway
of India, Cama hospital and Nariman house, which were under terror attacks. Local tourists
and foreign travellers’ inflows to Mumbai have been on increase on account of this new
found ‘terror tourism’. Bullet marks on walls, windows and roofs, damaged regions and
reinstated structures are all very inviting for the tourists visiting here. Tourist guides and
agencies give elaborate descriptions on the events and showing various places under the
siege. You can get details of the past terror and bomb attacks at this place from these
guides. The surge of travel and tourism industry in the country in 2009 is a pointer
towards the great confidence the travelling populaces and vacation tourists in safe Indian
Destinations. Statistics points to the fact that there was a dwindling of about 8% in the
number of foreign tourists to India in 2009 comparing with the
17.corresponding numbers in 2008. This 8% is pretty small considering the real facts about
the economic recession and the fear spread due to the H1N1 flu. It just tells that the terror
attacks or security threats has not much affected the tourism industry in India. It is
predicted that Mumbai is going to witness a surge in tourists as the economy regains and
the business travels increase. You can go anywhere in India. You can be assured of extra
secure tourist activities in the picturesque, inviting and breathtaking Indian hot spots.
http://www.youtube.com/watch?v=z-Sk75MScBM http://www.youtube.com/watch?
v=KPpLeXa5-6s
18.Terrorist Attacks Will Further Weaken a Slowing Indian Economy The Belvedere is an
exclusive club at Mumbai's Oberoi hotel. Along with its equivalent at the Taj Mahal -- The
Chambers -- it is a popular watering hole for India's business barons and CEOs. According
to an estimate by business magazine Business Today, the members of the Belvedere
alone account for more than 80% of the market capitalization of India's publicly listed
companies. In late November, both clubs were savagely mauled in the terror attacks that
rocked the city and shocked people around the world. During a 60-hour siege at the two
hotels and other locations, terrorists took hostages and ran riot with grenades, Small
Things Happen In Such Big Cities assault rifles and bags of RDX, a powerful explosive.
Ashok Kapur, chairman of Yes Bank, was among the 170 people killed in the attacks. The
terrorists did so much damage that the two hotels could be closed for six months to a
year.
19.The Oberoi and the Taj are not just places to strike deals. Events held here routinely host
the rich and famous. The presentation ceremony of The Economic Times Awards for
Corporate Excellence was to be held at the Trident -- the companion hotel to the Oberoi
which was also attacked by the terrorists -- on November 29. Prime Minister Manmohan
Singh was to preside over the event. Practically every CEO of India's leading companies
would have been there. Perhaps presciently, The Economic Times reported on November
11: "Given the high profile nature of the event, the security agencies have already begun
scouting the location for D-Day." The three-day terror attack, which is now known as
26/11, put an end to the celebrations. The ripples have not been felt in India alone. "There
will hardly be a Fortune 500 chief executive who has not lately stayed in the Oberoi or the
Taj Mahal, and the impact of this attack will be felt in boardrooms around the world,"
wrote The Economic Times. Political Fallout On the political front, the siege of South
Mumbai has already taken its toll. Union home minister Shivraj Patil -- responsible for the
 nation's security -- has resigned. Former finance minister P. Chidambaram has taken over
that job. Prime Minister Singh has taken charge of the finance portfolio. But the finance
ministry, in today's global crisis and domestic slowdown, is a fulltime job. Some observers
believe that Singh may not be able to do justice to it, given his other responsibilities.
20.In the state of Maharashtra, too, of which Mumbai is the capital, heads have rolled. Chief
minister Vilasrao Deshmukh has been forced to resign. The last straw was his going to visit
the ruined Taj with a filmmaker who specializes in disaster movies in tow. The press
dubbed it "terror tourism" and the Congress leadership in Delhi sacked Deshmukh.

26/11 and after effects on tourism

in India

It was exactly a year ago the gateway of India - Mumbai was

under the siege of terrorists. 26/11 in 2008 is a day of horror in
the minds of Mumbaites. The World saw the terrorists’ activities
and the commando operations live on many channels. The
burning picture of Taj Hotel symbolizes the terror unleashed in
the Mumbai coast. The 60 hr long battle saw the terrorists
galloping at-last and equally with great sacrifices of Indian
warriors. More than 160 people lost their lives and few hundreds
were injured.
On this day, the great Indian symbols were attacked. Gateway of
India, Taj Mahal Palace, Oberoi Hotel and Nariman House were
some of the important monuments attacked by the terror
networks. It was not the first time these patriotic monuments
were aimed by miscreants. The terrorist bomb attack on August
25, 2003 near the Gateway of India killed nearly 50 people and
left hundreds injured.

Tourism Industry
The monuments were damaged, the lives of many were shattered
and many establishments were under threat. 26/11 affected the
life of common man all over the country, especially in major
urban cities like Delhi, Bangalore, Kolkata and Chennai apart from
Mumbai. All ways of life were affected. Travel and tourism was
also not an exception. It was a major casualty.

26/11 in 2008 had happened just at the beginning of the India’s

best tourist season in the decade. It was expected to cross the
great landmark of 5 million foreign travelers in the year. 26/11
became the bottleneck for the miraculous growing of tourism
industry in India. In fact the tourism sector was not sound
enough to absorb such an impact as it was already affected by
the economic meltdown. Inflow of foreign travelers was reduced
and local tourists avoided big cities. Mumbai especially saw the
significant reduction in the number of tourists in the first three
months after 26/11. The major casualty is the tourism ministry’s
projection of 10 million tourists by 2010. It is perceived that the
target would be difficult to achieve!

However, the concentrated efforts of industry and the

Government are now bringing fruits. They could mobilize voices of
many world-wide agencies like National Geographic to endorse
and assure safe tourism in India for the traveling community and
promoted India as a must see destination. Thanks to the
confidence building measures and the great support by the
Government machinery, Indian tourism regained its lost glory by
mid of 2009.

Terror Tourism!
At the other end, Mumbai has seen the arrival of a new set of
tourists. Travelers flock to this place to view the monuments like
Taj hotel, Gateway of India, Cama hospital and Nariman house,
which were under terror attacks. Local tourists and foreign
travelers' inflows to Mumbai have been on increase on account of
this new found ‘terror tourism’. Bullet marks on walls, windows
and roofs, damaged regions and reinstated structures are all very
inviting for the tourists visiting here. Tourist guides and agencies
give elaborate descriptions on the events and showing various
places under the siege. You can get details of the past terror and
bomb attacks at this place from these guides.

The surge of travel and tourism industry in the country in 2009 is

a pointer towards the great confidence the traveling populaces
and vacation tourists in safe Indian Destinations. Statistics points
to the fact that there was a dwindling of about 8% in the number
of foreign tourists to India in 2009 comparing with the
corresponding numbers in 2008. This 8% is pretty small
considering the real facts about the economic recession and the
fear spread due to the H1N1 flu. It just tells that the terror
attacks or security threats has not much affected the tourism
industry in India.

It is predicted that Mumbai is going to witness a surge in tourists

as the economy regains and the business travels increase. You
can go anywhere in India. You can be assured of extra secure
tourist activities in the picturesque, inviting and breathtaking
Indian hot spots.
The Impact of 26/11 on the Indian Economy

The Mumbai terror attacks gave the world a glimpse of the ingenuity of the evil forces that have
triggered terrorist acts around the globe. With the world already reeling under the impact of an
economic crisis, the attacks were viewed as the proverbial straw that would break the back of
the Indian economy. But were they the making of an economic crisis or the opening of a door of
opportunities for foreign investments in the country?

The Impact of 26/11 on the Indian Economy

It''s like a slap in the face of the terrorists who wanted to derail India''s economy by striking at
its heart. They seem to have forgotten how investors behave when the market is low, especially
in a market with a proven track record.