Indian business returns to work

By Neil Heathcote
Editor, India Business Report, Mumbai

When two armed men walked through one of Mumbai's main railway stations shooting at random, the Wheeler bookstall was caught in the crossfire.

People are afraid, but they'll get over it Dharmender Ajwelkar

You can still see the bullet holes across the front of the kiosk, along with a small memorial to Chandulal Tandel, the vendor on duty who was killed that evening.

It hasn't stopped his colleague going back to work behind the counter, selling magazines to the commuters who once again fill the station.

"I was a bit scared at first, but what can I do? I have to work," says Dharmender Ajwelkar. "At the moment people are afraid, but they'll get over it."

Mumbai is used to terror. This was not the city's first attack, and few people believe it's the last.

Most companies have re-opened, hoping for business as usual. They have no choice. They need the money.

Level of risk

The Taj and Oberoi hotels were regular venues for visiting business people, whether for overnight stays or just coffee in the foyer. Many of them have now cancelled or postponed their trips.

India's too big an economy to ignore Bundeep Singh Rangar, the head of London-based consultancy IndusView

This was an attack aimed at the heart of corporate India.

But a string of bombs attacks across the country over the past year have failed to dent business sentiment.

Many of those here see it as just part of the risk of working here.

"I think foreign investors will take a wait and see approach," says Bundeep Singh Rangar, the head of London-based consultancy IndusView who was in Mumbai on the night of the attack.

"India's too big an economy to ignore. You simply can't stay away. You'll be cautious, but you won't turn your back."

"There is fear in the minds of people doing business here," agrees the head of the Confederation of India Industry, K V Kamath.

"But in the case of Mumbai, this fear will be overcome very soon. I think the external world will take a little more time."

He too is confident that visitors will soon come to terms with the new level of risk.

No protection

Hotels, shopping malls and cinemas are busy upgrading their security, but the attacks have raised the bar to a very high level.

K V Kamath supports armed company guards

There's little firms can do if their multiplex or school is specifically targeted by armed militants whose main goal is to kill.

The army cannot protect every building, 24 hours a day, seven days a week.

The debate has only just begun on whether the law should be changed to allow company guards to carry guns.

K V Kamath wants change, although not to the extent that enterprises become armies.

"I would support a move where you would have... some arms," he says, "which can protect you from a situation where today you have no protection at all."

Economic pressure

Shoppers are still staying away from South Mumbai, but tourists were the first to cancel their trips.

I hope they have a much better crisis management system in place the next time Niyati Mehta

Bookings were down even before the attacks, thanks to the recession in the west. Now hotels across the country are reporting a wave of cancellations, as far afield as Kerala.

Many are scaling down their new year's eve parties, as even local people try to avoid becoming potential targets.

These security concerns are adding further pressure to an economy that was already slowing down.

As life in Mumbai returns to normal, it's this economic squeeze that once again captures the headlines.

Although India's economy is expected to grow more than 6% this year, the next few months will be tough. Many exporters may go broke or cut jobs.

Business as usual

Some two weeks after the attacks, the government has announced an economic aid package to re-energise industry.

But for many of those who run companies, and who were targeted in the attacks, the whole episode has come as a wake-up call.

The government can do little to stop a global recession, they say, but it should at least be able to protect its citizens.

Niyati Mehta was dining at the Taj Hotel at the time of the attack. After a tense few hours, she was evacuated from the building. She's now back at work helping run her family's chemicals company.

Like many of those trapped in the hotel that first evening, she had little idea what was happening at the time. The full horror of the massacre only dawned on her once she had reached safety and turned on the television.

Now she wants to see changes to make sure this never happens again.

"I know that we live in a world of terror, and that (the government) can't guarantee safety," she says. "But I expect action to be taken.

"I hope they have a much better crisis management system in place the next time something happens."

Thousands of people took to the streets last week to echo her feelings. After a year of bombings around the country, many are tired of the endlessly repeated clichés about the country's resilience and how quickly its citizens will bounce back. They want the killing to stop.

Only then will India be able to say it's truly back to business as usual.