Moneycontrol Pro Panorama | Conflict Creates Headwinds, Trade Brings Tailwinds
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 Pakistan-occupied Kashmir. As of this writing, several airports are shut, northern and western border states are on high alert, and cross-border shelling has intensified.
We acknowledge that discussing markets in the backdrop of human tragedy may appear insensitive. However, history reminds us that long-term economic strength is key to national security. In today’s world, wars are no longer fought only on the battlefield—they play out in economic arenas too. Progress, trade, and stability are as much tools of defense as any physical arsenal.
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