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Date: 07/05/2025

No major economic disruption for India due to border tension, says Moody’s

The sustained escalation of tensions between India and Pakistan will not have any major economic disruption for New Delhi but will be a setback for Islamabad as its forex reserves could come under pressure and weigh on growth, according to global rating agency Moody’s report titled ‘Escalating Pakistan-India tensions would weigh on Pakistan’s growth.’ It said India has minimal economic relations with Pakistan (less than 0.5% of India’s total exports in 2024). Sustained escalation in tensions with India would likely weigh on Pakistan’s growth and hamper the government’s ongoing fiscal consolidation, setting back Pakistan’s progress in achieving macroeconomic stability. 
 
Moody’s said the macroeconomic conditions in India would be stable, bolstered by moderating but still high levels of growth amid strong public investment and healthy private consumption, as per a report.
 
Source: Exim News Service: New Delhi, May 6



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