Terrorists aim to economically cripple India
Eighteen bombs in Surat, 16 blasts in Ahmedabad and the one that was diffused, and 9 blasts in Bangalore - the aim was as much to create an atmosphere of fear as to dent India’s economic prosperity.
By ET Bureau |
NEW DELHI: Eighteen bombs in Surat, 16 blasts in Ahmedabad and the one that was diffused, and 9 blasts in Bangalore ��� the aim was as much to create an atmosphere of fear as to dent India���s economic prosperity.
While fear could be perpetrated by striking just about any city or town in the country, economic destabilisation would only be possible by striking at commercial centres. This, then, explains the choice of targets: Bangalore, Ahmedabad and Surat, all in quick succession.
Experts suggest that terrorists have, through repeated strikes, managed to undermine the country���s intelligence set-up. They are now changing tack to target the country���s economy. The understanding being that the impact would be more lethal. The strikes in Bangalore, Ahmedabad and the abortive attempts in Surat only seem to confirm this change of tack.
Both, Karnataka and Gujarat, have emerged as investment destinations. While Karnataka, especially Bangalore, has been the destination for investment for a while especially in terms of IT and biotech investments, Gujarat, through its remarkable growth, has become a favourable destination for investment in manufacturing and power over the last five years.
Industrial production in Gujarat grew at 12.6% between 2003 and 2008. Investments in the state are to the tune Rs 5.62 trillion and memoranda of understanding for another Rs 6.5 trillion worth of investments have been signed. The state received foreign direct investment to the tune of $5 billion between 1991 and 2007.
The state government is currently working on a new policy, which the Gujarat chief minister hopes to take to international investors ahead of the global investors summit in January. The focus is on agri-businesses, textiles, gems and jewellery, mineral-based industries and ship building. It is this economic growth that has now become the focus of terrorist attack.
It is more than just creating and sustaining a climate of terror that is driving the choice of strikes that the terrorists are making. Security experts say that terrorists are choosing commercial hubs to undermine economic activity and to destroy India���s attractiveness as a destination for foreign investors. Such an understanding is not far fetched. Security analysts like B Raman, the former chief of the Research and Analysis Wing, have drawn parallels to the situation in Pakistan in 1990s, when continued terror strikes in Karachi created a feeling of insecurity among foreign investors, resulting in their subsequent withdrawal. While it is early days yet, continuous blasts in such short span would lead to rethinking by domestic and foreign investors on the desirability of their investments.
If the strikes in Bangalore and Ahmedabad indicate an attempt by terrorists to undermine the country���s economy, then the abortive attempt in Surat only serves to confirm this. Surat is India���s best known diamond trading centre. But Surat city and district is more than just a textile and gems and jewellery centre.
Surat accounts for 20% of large projects commissioned in the state and projects worth Rs 25,220 crore are being implemented. The district has attracted investments worth Rs 28,648 crore, second only to Jamnagar. It is one of the top five districts of the 25 districts in the state of Gujarat in terms of economic performance. Surat is more than its diamond and textile businesses, it is an industrial centre ��� ABG Shipping, Essar Steel, Essar Power, Royal Dutch Shell, L&T, Reliance Industries and NTPC all have bases in Surat. Not only that, Surat is home to the country���s key LNG terminal which is located in Hazira. Suddenly, a terror strike in Surat takes on a whole new complexion.
Security analysts say that the trend towards undermining India���s economic prosperity became evident from the blasts in Jaipur in May this year. The city is an important destination for tourists, with as many as 1.2 million foreign tourists visiting the city each year.
The attempt is to create a situation of insecurity that would not only impact the people who live in these areas but its economy as well. While local people have no option to take these terror strikes in their stride, investors will think twice before putting their money in places which are prone to terror strikes.
While fear could be perpetrated by striking just about any city or town in the country, economic destabilisation would only be possible by striking at commercial centres. This, then, explains the choice of targets: Bangalore, Ahmedabad and Surat, all in quick succession.
Experts suggest that terrorists have, through repeated strikes, managed to undermine the country���s intelligence set-up. They are now changing tack to target the country���s economy. The understanding being that the impact would be more lethal. The strikes in Bangalore, Ahmedabad and the abortive attempts in Surat only seem to confirm this change of tack.
Both, Karnataka and Gujarat, have emerged as investment destinations. While Karnataka, especially Bangalore, has been the destination for investment for a while especially in terms of IT and biotech investments, Gujarat, through its remarkable growth, has become a favourable destination for investment in manufacturing and power over the last five years.
Industrial production in Gujarat grew at 12.6% between 2003 and 2008. Investments in the state are to the tune Rs 5.62 trillion and memoranda of understanding for another Rs 6.5 trillion worth of investments have been signed. The state received foreign direct investment to the tune of $5 billion between 1991 and 2007.
The state government is currently working on a new policy, which the Gujarat chief minister hopes to take to international investors ahead of the global investors summit in January. The focus is on agri-businesses, textiles, gems and jewellery, mineral-based industries and ship building. It is this economic growth that has now become the focus of terrorist attack.
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It is more than just creating and sustaining a climate of terror that is driving the choice of strikes that the terrorists are making. Security experts say that terrorists are choosing commercial hubs to undermine economic activity and to destroy India���s attractiveness as a destination for foreign investors. Such an understanding is not far fetched. Security analysts like B Raman, the former chief of the Research and Analysis Wing, have drawn parallels to the situation in Pakistan in 1990s, when continued terror strikes in Karachi created a feeling of insecurity among foreign investors, resulting in their subsequent withdrawal. While it is early days yet, continuous blasts in such short span would lead to rethinking by domestic and foreign investors on the desirability of their investments.
If the strikes in Bangalore and Ahmedabad indicate an attempt by terrorists to undermine the country���s economy, then the abortive attempt in Surat only serves to confirm this. Surat is India���s best known diamond trading centre. But Surat city and district is more than just a textile and gems and jewellery centre.
Surat accounts for 20% of large projects commissioned in the state and projects worth Rs 25,220 crore are being implemented. The district has attracted investments worth Rs 28,648 crore, second only to Jamnagar. It is one of the top five districts of the 25 districts in the state of Gujarat in terms of economic performance. Surat is more than its diamond and textile businesses, it is an industrial centre ��� ABG Shipping, Essar Steel, Essar Power, Royal Dutch Shell, L&T, Reliance Industries and NTPC all have bases in Surat. Not only that, Surat is home to the country���s key LNG terminal which is located in Hazira. Suddenly, a terror strike in Surat takes on a whole new complexion.
Security analysts say that the trend towards undermining India���s economic prosperity became evident from the blasts in Jaipur in May this year. The city is an important destination for tourists, with as many as 1.2 million foreign tourists visiting the city each year.
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The attempt is to create a situation of insecurity that would not only impact the people who live in these areas but its economy as well. While local people have no option to take these terror strikes in their stride, investors will think twice before putting their money in places which are prone to terror strikes.
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