Impact of terrorism on

Indian Economy

Meaning :
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.

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

INDOPAKISTANI
WAR OF 1965

3,264
KILLED

3800
KILLED

INDOPAKISTAN
I 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 Behavior
Loss of Human Capital
Short Term Financial Loss
Retrenchment effect on Specific
Industries

Long term impacts:

Political Instability
Global Implications
Long Term Financial Loss

India
th
ranks 6 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.

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 India30 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