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 The economic impact of rising tensions between India and Pakistan — tensions that intensified after India’s May 7 strikes on terror bases across the border — will largely depend on how the situation evolves in the coming days, according to Rajiv Kumar, former vice chairman of NITI Aayog. Speaking to Moneycontrol , Kumar noted that a prolonged conflict could trigger capital flight and place a heavy fiscal burden on the Indian economy, even though India has emphasized that Operation Sindoor was a precise, non-escalatory action. Also check:  first4roofing  |  first4driveways Concerns are mounting over the possibility of a full-scale military conflict after India targeted nine terror camps in Pakistan and Pakistan-Occupied Kashmir (PoK), following the deadly Pahalgam terror attack two weeks earlier that claimed 26 lives. “The fallout really hinges on how much the situation escalates,” Kumar said. “In the worst-case scenario, we could see foreign capital pulling out ...

 The Department of Economic Affairs (DEA), under the Ministry of Finance, has released a draft framework for developing India’s Climate Finance Taxonomy . Announced on Wednesday for public feedback, the draft outlines the goals, principles, and approach that will guide the creation of this critical financial tool, according to an official statement. The framework lays out the methodology for identifying and classifying activities, projects, and measures that contribute to India’s climate commitments, while also supporting the country’s vision of achieving Viksit Bharat by 2047. The DEA has invited public comments on the draft until June 25, after which the final framework will be formalized. The purpose of India’s Climate Finance Taxonomy is to channel more resources toward climate-friendly technologies and activities, helping the nation move toward its ambitious goal of reaching net zero emissions by 2070 , while ensuring long-term access to affordable and reliable energy. “T...

 The Panorama newsletter is curated exclusively for Moneycontrol Pro subscribers and is delivered on trading days. It not only compiles key stories from Moneycontrol Pro but also provides context around a significant event or trend investors should monitor. In 1999, during the Kargil conflict, India’s economy defied expectations. Despite heightened tensions and military engagement, GDP growth clocked in at 6.8 percent—outpacing forecasts from institutions like the International Monetary Fund (IMF). Looking back at various periods of conflict between India and Pakistan, a common thread emerges: economic resilience. While capital markets reacted with volatility and investor sentiment took a hit, the broader economy often recovered swiftly once the dust settled. Fast forward to today, tensions have flared once again. A terror attack on civilians in Pahalgam, Kashmir, has led to a sharp escalation, with India responding through targeted strikes on terror camps in Pakistan and Pakist...

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