Mon, May 12, 2025
Battle Beyond Borders: India, Pakistan And The Economic Domino Effect
A strategic overview of the economic, investment, and connectivity implications of escalating India-Pakistan tensions in a shifting regional and global policy landscape
May 07, 2025 · 1 min read
This video with Jayanta Roy Chowdhury and Mahua Venkatesh examines the economic impact of escalating tensions between India and Pakistan. With Pakistan grappling with high inflation, IMF reliance, and dwindling reserves, a prolonged conflict could have severe consequences. In contrast, India’s $4.19 trillion economy, marked by greater resilience and market stability, appears better positioned to absorb short-term shocks.
The episode also delves into the wider geopolitical consequences—ranging from shifts in foreign investment flows and renewed FATF scrutiny to the future of key connectivity initiatives like the India-Middle East-Europe Corridor and the Chabahar port. While a full-scale military escalation remains unlikely, the outcome on the economic and diplomatic fronts is set to define the regional trajectory in the coming months.
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