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In just 48 hours, Indian investors reportedly lost $83 billion – equal to PKR 23.5 trillion – due to a sharp stock market crash, severely hitting a $4.19 trillion economy, according to Indian media.
International experts and media, including Bloomberg and U.S. financial analysts, have emphasized that the recent Indo-Pak war economic impact would have been far worse for India if the conflict had lasted longer.
India, which records $821 billion in annual exports and has $514 billion in foreign investment reserves, faced significant uncertainty during the brief conflict.
Bloomberg highlighted that a peace deal between India and Pakistan could unlock massive economic growth for the South Asian region, creating new opportunities for trade and development.
READ: No ceasefire, no trade deals; US warns Pakistan-India
Meanwhile, U.S. credit rating agency Standard & Poor’s (S&P) warned that a prolonged war would have damaged investor confidence in India and delayed relocation of global supply chains, further destabilizing regional markets.
Former Indian security officials and economists also acknowledged that while both nations would suffer, India’s larger, more globally connected economy made it more vulnerable to prolonged conflict-related shocks.
