Indian business and economy after the Mumbai attacks

The terror attacks in Mumbai on November 26, 2008 may have unsettled corporate India, but only temporarily. In the face of adversity, corporate India stood united to overcome this crisis, and emerge stronger, determined to ensure that the attacks did not vitiate the economic climate, and that the economy does not unduly suffer because of the attacks. As information about the attacks in India spread, there were concerns regarding investment, especially foreign direct investment into India which could be adversely affected. As more people sought information on India from various industry resources and bodies, corporate India spoke in one voice to say that they would do everything within their capacity to ensure that the economic climate remained stable, and positive. India Brand Equity Foundation, a public-private partnership between the Ministry of Commerce and Industry, Government of India, and the Confederation of Indian Industry, has been showcasing the commitment of corporate leaders through news articles that captured their sentiment and belief.

Their belief in the economy was echoed by foreign investors too. On November 26, 2008, the Finance Ministry stated that the government has approved 32 foreign direct investment proposals, while Indo-Arab trade (excluding oil trade), which stood at $30 billion in 2006-07, is expected to touch the US$ 100 billion mark in the next two-four years.  According to industry resources, India witnessed a 36 per cent rise in investments during the July-September 2008 period and the investments continue to rise. Industry research revealed that the industry was confident of sustained growth in the Indian economy, especially with regard to foreign direct investment.  The Confederation of Indian Industry said, “The GDP figures reaffirm our belief that the Indian economy remains resilient in the face of headwinds.”

Given the measures undertaken by the government to boost the economy, the firm resolve displayed by corporate India to ensure the economic climate remained positive, India is poised to attract greater investments, especially foreign direct investment in the coming years.

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