Moneycontrol Pro Panorama | Conflict’s Weight and Trade’s Windfall

 The Panorama newsletter, exclusive to Moneycontrol Pro subscribers, is delivered on market days. It provides a curated roundup of key stories on Moneycontrol Pro, along with insightful commentary on events, trends, or developments that investors should watch closely.

Back in 1999, during the height of the Kargil conflict which ultimately ended with Pakistan pulling back under global diplomatic pressure, India’s economy posted an impressive 6.8% growth—surpassing even the IMF’s projections. Despite the heightened geopolitical tensions, India’s economic narrative was one of resilience. While the capital markets faced turbulence, with heightened volatility and erosion in investor wealth, the long-term picture remained optimistic.

Today, we find ourselves witnessing a similar flare-up in tensions. The recent terror attack on civilians in Pahalgam, Kashmir, followed by India’s retaliatory operations targeting terror camps in Pakistan and Pakistan-occupied Kashmir, has further escalated the situation. In response, several airports have been temporarily shut, and border states in the north and west are on high alert, with reports of cross-border shelling surfacing.

It is important to pause and acknowledge that discussing financial markets in the backdrop of human tragedy may come across as insensitive. However, we believe that economic strength plays a crucial role in shaping a secure and stable future for a nation. In the modern era, conflicts are not limited to conventional warfare—economic resilience has become an equally significant front