The deadly terror attack in Paris
will have a shattering impact on the global economy with major impact feared on
the travel related sectors such as airlines, hotels, restaurants, city
transport. It is also a very bad news for the oil and gas as the travel and
tourism are the major triggers for the fuel demand, be it for cars, local
transport or jet fuel.
Understandably, the maximum impact
would be felt on major economies across Europe which are already battling
slowdown. The ripple effect would also be seen on major trading partners of the
European Union- the US, China, India and Japan.
These attacks, the worst and the
most brazen since the World War II on France have shaken the citizen
confidence. It is the citizen who is the core of the political and economic
system and when the core is attacked and shaken, rest of the pieces of the
block fall wide apart.
For the world leaders who are
grouped into different nomenclature like G 20 and G 8 etc, it will be terrorism
again that is going to be the top priority. The fact that the terrorists
could strike at Paris twice in a year shows how vulnerable a state can be even
when the French intelligence is considered to be among the best.
That means , these suicide squads are capable of breaking any barrier.
India gets bulk of its foreign
tourist traffic from western Europe for
its winter season, which has just about begun. States like Rajasthan,
Delhi, Goa, Kerala attract a good number of tourists. These attacks in France
will definitely have bruising impact on
the tourism sectors in these Indian states.
So, along with the commodities like
metals, the tourism industry would come under pressure, ironically at a time
when the aviation sector in India along with the rest of the world was showing
a promise riding on the back of cheap jet fuel resulting in a sharp reduction
in their operating costs. Several of the carriers in India like Spice, Jet have
reported better results while the Initial Public Offering of the most
profitable carrier Indigo has been a great hit on listing. Hotels too
would get a hit .
How the world rallies around this
terror attack would also make a difference. The key would be how countries in
the Middle East respond. France is wounded badly but the wounds are
hurting all and would have a huge economic cost.
Pic courtesy: GOI
