Economic Effects
- Dislocation of Economic activities: Terrorism, conflict and instability in J&K have been a major obstruction to its development and progress levels. Industrial sector is way behind as compared to other states.
- Damages to Property:9/11 attacks are example of loss of lives and property due to terrorism. The twin towers were reduced to rubble. Blasts in populated cities like Delhi and Mumbai have led to serious losses of lives and property.
- Higher expenditure on Defence and Police: Incidences of terrorism leads to a huge burden on exchequer as it results in heavy expenditure on defence budget. India’s defence budget is 7th largest in the world. India is also world’s 2nd largest importer of arms. This shows that terrorism leads to diversion of funds which can be utilised for Developmental activities and social welfare.
- Increased uncertainty in the markets:Shares in Mumbai opened 1.5% lower and threatened to fall rapidly on the first day of trading after 26/11 attacks in India’s commercial capital. The financial markets literally shut down after Sept. 11 and did not really recover until months after the 2003 invasion of Iraq. This shows that markets rally downward when terrorist incidences occur.
- Decline in Investments:Businesses generally avoid investing in countries affected by terrorism. However, Investments depend on several other factors as well. For example, Pakistan is receiving huge sums of investment from China because of CPEC (China-Pakistan Economic Corridor) even when it is suffering from terrorism.
- Psychological Effects:Terrorist attacks have long lasting impact on the people affected. People suffer from. Many experiences transient reactions, such as acute stress disorder (ASD) and bereavement. In an even smaller percentage, more serious conditions such as post traumatic stress disorder (PTSD) or depression develops.
Political Effects
- Non-engagement of Youth in Politics: This is one of the impacts where terror activities have become a routine affair. Ex. youth in Kashmir are misled by propaganda from terror organisations like LET etc. Youth are attracted towards militant organisations and become sceptical of the political process. The killing of young Burhan Wani is a testimony to this fact. Another example is the Violence and low turnout witnessed in Srinagar By-polls in 2017.
- Credibility of elected representatives is questioned: Srinagar Lok Sabha by-polls of 2017 witnessed lowest ever turnout of 7.14%. In such a scenario winner cannot claim to be true representative of population of his constituency.
Governance
- Erosion of faith in government: In Kashmir, the belief of people in the government has decreased considerably. This is testified by the incidences of stone pelting across the valley.
- Law and Order deteriorates: The law-and-order situation also deteriorates as result of terrorism. This is further exaggerated when the terrorists have support from local populace. In Kashmir valley attacks on police and security forces have increased considerably. Same is the situation in left wing extremism affected areas.
Social Effects
- Disintegration of Society:society is disintegrated. For example, Tribal way of life is deeply disturbed because of left-wing extremism. Tribals are often harassed by Maoists and at times by police. The exodus of Kashmiri pandits due to insurgency in 1990s is another example.
- Atmosphere of Fear, Suspicion and Panic
