Won’t hit trade, says India Inc

Tribune News Service & PTI

New Delhi, September 29

India Inc today said there will be no impact on India’s trade and economy following the surgical strikes across the border and volatility in the stock markets will be short-lived.

While applauding the Modi Government for taking desired action of surgical strikes against Pakistan, Mahesh Gupta, president, PHD Chamber of Commerce and Industry, said there will be no impact on India’s trade and economy. “The volatility in the financial markets will also be short-lived”, he added.

The chamber said India’s economy is growing from strength to strength and has become the fastest moving economy in the global economic system. “Our industry and businesses will continue to function as usual,” he said.

PHD Chamber said Pakistan’s presence in Indian trade and investments is minuscule and insignificant.

India’s flow of two-way trade with Pakistan is only $2.5 billion of which India exports to Pakistan for $2 billion and imports worth half a billion dollar which accounts for only 0.4% of India’s overall trade.

“We have a lot of potential to divert our trade and investment flows towards many peaceful economies in the region,” Gupta said.

Industry body Assocham said for the sake of national security, the Indian economy has a strong bandwidth to deal with any possible after effects of the current state of tensions with Pakistan.

The chamber added that while reaction in the stock market to the news of India’s surgical strikes was understandable, there is no cause of concern for the Indian economy which has the capability to take any extra costs to be borne for the sake of national security.

FIEO Director General Ajay Sahai too ruled out any negative impact on India's trade with other countries. However, he said India's move to review the MFN status accorded to its neighbour has raised some uncertainty for exporters on whether trade will normalise in the future.