Indian economy paying price of terror attack

What was the real intention of the terror attack of 26/11 on Mumbai? This question is hitting the common citizens of India at present. We must remember that terrorists neither submitted any charter of demands nor stated their grievances against any subject. Though many love to state that it was a desperate act to protest against plight of Muslims in India, the argument fails to hold water. A brisk comparison between the Indian and Pakistani Muslims is enough to brush aside this point of view. While the Indian economy is gaining strength and is steadfast to become the next superpower in the international scenario, the financial condition of Pakistan is tottering.

All these indicate that the real intention of the assault perhaps had been to weaken the Indian economy. Though it is strong, in this global financial condition each economy is facing recession. The terror attack has (undoubtedly) deteriorated the condition and the greatest casualty has been the property market of Mumbai. According to the prudence of experts the market is silent and the rate of investment is low. What’s more the future doesn’t look bright either. The last six months in this context was hardly good but the terror has made things worse.  

A brief assessment of the situation will make the picture clear.  According to UBS AG, the rate of home sales in the financial capital of India dropped 21 percent in the seven months to Oct. 31. There are enough chances that it will go down more if the present scenario is taken into account.  The attack made the foreigners an easy prey when a large number of multinational companies were taking interest in the city’s financial climate and companies like Macquarie Group Ltd. and Barclays Plc. were seeking places in Mumbai.  

The situation is same regarding registration of new homes in the city, which witnessed a reduction of 35 percent in October from a year earlier.

The situation is grim and since the city accounts for a third of India’s taxes, the Indian economy is paying the price for the terror attack.