This book examines the political economy of terrorism from a quantitative perspective. With a particular focus on India, it explores the different forms of terrorism, including contested sovereignty, revolutionary change, and secessionist movements. By evaluating terrorist activity in India over the last 20 years and comparing it with other areas that have seen political violence, the key drivers of terrorism are highlighted. The policy and economic responses to terrorism are then evaluated to consider the effectiveness of both deterrence-based and grievance-removing approaches to reducing terrorism. This book presents a detailed and considered analysis of the causes and responses to terrorism. It will be relevant to students, researchers, and policymakers interested in political economy.