Mumbai WILL bounce back

Yesterday I made a post where I said that the analysts and strategists in Mumbai, India were concerned that the terrorist attacks may have long term economic impact; however, today I read this article and it states the exact opposite. I think its interesting how everyday different predictions are made and I wait to see what really will be the after math of the attack.

The attacks definitely rocked the financial capital of India, depressing stocks, dampening tourism and slowing new investment, but analysts and business people on Thursday said that the attacks were unlikely to inflict long term damage on the nation’s economy.

Like I anticipated and stated in my previous post, this article states that intention of the attackers was to create panic and shatter the confidence in the minds of investors in India and global investors coming to India.

Analysts and business owners suspect that people will be scared and investors may balk as a consequence of the attacks, but they say that the foreign companies that invest in India are “too big to and well entrenched to consider a hasty exit.”

A partner at global consulting firm Grant Thornton who was supposed to be in the city on the day of the attacks was quoted as saying that the attacks definitely came as a shock and that there will definitely be some short-term postponement of people's investment plans, and perhaps people thinking of relocating to Mumbai will reconsider but medium- to long-term corporate investment would likely remain on track.” Mumbai is a very resilient city. Saturday everything will be running as normal" he added. Director of sovereign ratings at Standard & Poor's in Singapore stated that the attacks were a challenge to the Indian government to maintain law and order in the country and that at this stage, he didn’t think there will be any major impact on the macroeconomic or fiscal position of the government. Chairman of the Wockhardt pharmaceutical company was also quoted as saying that the attacks were a challenge to the economic resurgence in India.

Hence it is clear that the attackers had no intention other than just to create a ruckus and cause the India economy to destabilize. I wonder whether Mumbai will be resistant to this or will it let the attack affect the countries economy. I am hopeful that the city will bounce back but like I said in my previous post, I think this time is different. However after reading this article I get some reassurance.