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At the Cafemutual Passives Conference 2025, Karan Datta, Founder of IMGN Advisors, shared his thoughts on the connection between safety and economic growth in a session titled ‘Operation Sindoor and Its Impact on Your Client’s Investment’. He said that if a country is not safe, its economy cannot grow properly. For money to grow, the country must be stable and secure.
Karan explained to the audience that between 1993 and 2013, India experienced more than 6,000 terrorist attacks. These attacks affected not only people's lives but also the economy. Citing a report by Moody’s, he noted that every major terrorist attack led to an approximate 0.75% drop in India’s GDP growth for that year and reduced investment inflows by around 2%. Over time, this added up to a significant loss—almost one-third of India’s economic growth lost due to terrorism.
Datta said things have changed since 2014. Since then, there have been no major terrorist attacks. He highlighted this as a key reason why India is now on a stronger growth path. A safe country inspires confidence among investors, businesses, foreign direct investors (FDIs), and ordinary citizens. When people feel secure, they are more willing to invest, build, and make long-term decisions.
He also touched on some recent conflicts, giving examples such as the Galwan clash with China and the Balakot airstrike. He said that India has demonstrated its ability to respond decisively. Because of such actions and improved control, the country is now in a much safer position.
Datta further addressed global challenges such as cyber-attacks, trade wars and high inflation. These issues affect the entire world, including India. However, despite these risks, he emphasized that India remains one of the few places with strong long-term wealth creation potential.
He reminded MFDs that they are not just managing money, they are also managing risks. To do this effectively, one must understand both domestic and global developments.
Datta concluded the session on a hopeful note, expressing his full confidence in India’s future. He believes that India will remain safe and strong, which in turn will fuel further economic growth.
To watch the full session and gain more insights on how conflicts affect our economy, you can click here.
