Violence cost India $680 billion in 2016

Violence, in 2016, cost the Indian economy 9% of its GDP, or, $680 billion, PTI reported.

A study titled Global Peace Index (GPI) Institute of Economics and Peace (IEP) said that the economic impact of violence on the global economy touched $13.6 trillion or 13.3% of gross world product.

The amount is also equivalent to 11 times the size of global foreign direct investment, it added.

The world became a less peaceful place in 2016, mainly on account of increased terrorism and higher levels of political instability.

India was ranked at 141 on a Global Peace Index (GPI) in a report by Institute of Economics and Peace (IEP). It has moved up two positions since last year.

“When expenditure on violence containment completely eradicates the need for additional spending then it is deemed as ‘economically efficient,” IEP stated in one of its reports.

India’s violence containment cost was $150 per capita in 2012 and this amounted to 3.7% of its GDP, the 2012 report by IEP stated.

The cost of violence containment was recorded at $186 billion purchasing power parity (ppp) which has increased significantly.

South Asia remains the second least peaceful region, the report said.

Within South Asia, Bhutan was ranked best (13th overall rank), while India was fifth followed by Pakistan at sixth (overall 153rd) and Afghanistan at sixth place (global 160th).