An Inquiry into the Causes and Effects of Contemporary Terrorism in India

Abstract

Abstract Worldwide, the number of deaths from terrorism is rising at an alarming rate. Needless to mention, terrorism has a huge negative impact on the economy, mainly affecting price, output, employment, trade balance, poverty, inequality, military expenditure, budget pattern of the governments, sociopolitical environment, and several others. Calculation of the impact of terrorism on economic variables is undoubtedly important as primarily it portrays the vividness of the activity. This chapter concentrates on the impact of economic variables on terrorism because it is believed that knowledge of such an impact is necessary for initiating policies for reducing terrorism. This chapter finds that, especially in India, increase in the level of human development, which otherwise is believed to reduce the terrorist activities of a country, increases the number of casualties due to terrorist activities primarily because of uneven social and economic development.