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Home > Business > PTI > Report


'Blasts to have no impact on economy, tourism'

August 28, 2003 16:32 IST
Last Updated: August 28, 2003 16:35 IST


Demonstrating its inherent resilience, India has bounced back from the impact of Monday's terrorist attacks in Mumbai and it will have no effect on the economy or the tourist travel, India's High Commissioner to the United Kingdom Ronen Sen has said.

"India has been the world's biggest target of international terrorism over the last two decades. This has not prevented the country from becoming the world's fastest growing democracy with a compounded annual GDP growth rate of over 5.7 per cent over the same period," Sen said in an interview to ITV News last night.

"I do not anticipate any significant impact on the economy or the tourist travel" as a sequel to the Monday's bomb blasts in Mumbai he said.

Sen assured that travel to and from Mumbai, and indeed, all parts of India remained safe and secure.

India has had to endure several unfortunate terrorist attacks over the last two decades, but these had been directed, barring very rare exceptions, exclusively at Indians and not foreign nationals, he said.

The New Zealand cricket team has announced on Tuesday that it will arrive on schedule, heralding the start of the winter travel and holiday season in India.

"A record number of overseas visitors are expected over the next few months," he said.

He said after the blasts, the country has quickly bounced back. The attacks, which had been aimed at undermining India's economy and its democratic and secular fabric, had resulted in a sharp dip of 120 points on Monday in the Bombay Stock Exchange's Sensex index from its 30 month high of 4124.

However, it rebounded by 148 points on Tuesday to wipe out Monday's losses and rose by a further 53 points, ending at 4208 on Thursday.

"Foreign institutional investors also showed their confidence in the strong fundamentals of the economy with aggressive buying into several stocks," Sen said.

Despite the blast at Zaveri Bazaar, India's main gold centre, the bullion market had remained totally unaffected.

The nearby diamond bourse was similarly unaffected.

"This positive movement of the BSE Sensex and the bullion market mirrors the larger picture in Mumbai, which was functioning normally within a matter of hours after the bomb explosions," he said.

"There are no disruptions in international or domestic air travel. Local, as well as inter-city train and bus services were also functioning normally. All international airlines maintained their normal schedules of flights through Mumbai and India's other international airports," he added.



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