2016 · GS Paper 3 · Q18 · 12 marks

"Terrorism is emerging as a competitive industry over the last few decades." Analyze the above statement.

In short

Terrorism has largely become a competitive industry where rival groups outbid each other for recruits, funds and attention, though ideology and state sponsorship keep it from being a pure market. After ISIS declared its caliphate in 2014, al-Qaeda launched its Indian Subcontinent branch that year.

Model answer

Ghissu Editorial · Verified 4 Oct 2026

Introduction
David Rapoport's religious wave of terrorism, which began in 1979, increasingly behaves like a market. Rival groups compete for the same recruits, donors, territory and headlines, and borrow the tools of business to win.
How Terrorism Behaves Like a Competitive Industry
•

Outbidding

Mia Bloom's outbidding thesis explains why rivals escalate brutality to stand out; after ISIS declared its caliphate in 2014, al-Qaeda launched al-Qaeda in the Indian Subcontinent the same year to keep South Asian recruits.

•

Franchising

ISIS licensed its brand to Boko Haram and the Islamic State Khorasan Province in 2015, as a corporation grows through franchises.

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Diversified revenue

Oil smuggling, extortion and narcotics fund groups, and Tamara Makarenko's crime-terror continuum fits India: D-Company's smuggling routes carried the RDX for the 1993 Bombay blasts.

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Rebranding

Lashkar-e-Taiba's Kashmir front became The Resistance Front, designated a terrorist organisation by the US in 2025 after the Pahalgam attack.

Where the Industry Analogy Falls Short
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Ideology over profit

Jaish-e-Mohammed is driven by ideology and grievance, and a suicide attacker seeks no material return.

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State patrons

Pakistan's ISI sustains Lashkar and Jaish as proxies, and FATF grey-listed Pakistan over terror-financing lapses from 2018 to 2022.

•

Collusion and collapse

The Taliban and al-Qaeda cooperate rather than compete, and over-reach cost ISIS its last territory at Baghuz in 2019.

This model answer is indicative and the model can make mistakes; please verify key facts independently.

Hand-drawn diagram: The Terror Outbidding Cycle. The Terror Outbidding Cycle. Flow: Spectacular attack → Media share → Recruits and funds → Bigger capability → (back to start)
Diagram: The Terror Outbidding Cycle

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