Mumbai: While announcing the decisions taken in the 3-day Monetary Policy Committee (MPC) meeting, Reserve Bank of India (RBI) Governor Sanjay Malhotra on Friday said the recent India-Pakistan conflict had negligible impact on economic activity. It may be noted that both the neighbouring countries were engaged in a brief military conflict in May.
The RBI Governor said the conflict has little impact on northern India, like some airports were temporarily closed, but the supply chain was not hit.
“The conflict… had a very, very limited, negligible impact on economic activity. It did have some impact for those days, especially in northern India, airports being closed, air passenger traffic did certainly decrease, but there was no major supply chain disruption, etc,” PTI quoted Malhotra as saying.
So, India-Pakistan conflict did not have any impact on economic activity, growth, and inflation.
For few days, Malhotra said, “Prices in those regions, those sectors, had gone up, but it has all normalised. It does not have any major impact on the economy.”
To avenge the dastardly terror attack in Pahalgam on April 22, in which 26 people were killed, Indian tri-services Indian Army, Indian Air Force and Indian Navy launched Operation Sindoor and hit terror infrastructure in Pakistan.
The Indian military carried out precision missile strikes on nine terror targets in Pakistan and Pakistan-occupied Kashmir. The terror infrastructure included, stronghold of Jaish-e-Mohammad and Lashkar-e-Taiba’s base in Muridke.
Rattled by India’s strong response against terror camps, Pakistan launched its offensive and bordering districts were affected.
Commenting on the recent rise in Covid-19 cases, the RBI Governor said it is not a matter of concern as of now.
“I think it has become one of the viruses, and hopefully it should stay like that,” he added.
The Reserve Bank of India (RBI) governor announced that the recent India-Pakistan military conflict had a negligible impact on India’s economic activity. While some localized disruptions occurred, such as airport closures in northern India, supply chains remained largely unaffected. Economy Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
