Another attack like last year's deadly raid on Mumbai could seriously damage India's economy, which remains a highly attractive target for militants, a top domestic security official said on Wednesday.
Union home secretary Gopal K Pillai said the Indian economy had largely brushed off the 2008 Mumbai attacks which killed 166 people, but its ports, oil rigs, nuclear facilities and especially its IT firms were a prime target.
Pillai's comments are the clearest signal yet about the country's continuing lack of preparedness.
"If you are asking whether we are fully protected – no, we are on the way," Pillai told a security conference in New Delhi.
"It will take us at least two years to say we are in a much better position to be able to withstand attacks.
"You have a series of, can I say, very attractive targets which are vulnerable and if any attack on any one of them is successful, it could have a serious impact on the Indian economy." A groundswell of public anger after the Mumbai attacks triggered several improvements in security and the government allowed hiring of para-military forces to guard private firms such as IT companies and back-office operations.
But the country's many chaotic cities, its 1.2 billion people and an under-paid and under-trained police force mean it is almost impossible to plug all security loopholes. Intelligence agencies have long warned that India's economic icons such as ports, dams and power stations and IT firms were prime targets of Pakistan-based militants trying to undermine the country's growing global profile by hitting its booming economy.
India's economy proved to be resilient after the Mumbai attacks. The stock market has soared nearly 80%, and Pillai said the market capitalisation of foreign institutional investors in India's top 25 firms grew to $48.69 billion this December, compared to $19 billion a year ago. But security experts warn that another attack could hit the confidence of investors already worried about any uncertainty in the Indian economy from the impact of regional tensions.
"You saw the Mumbai attacks, it was more of a wake-up call," Pillai said.
"It did not have a major impact on the economy as such, but India is vulnerable, there is no doubt about it."
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