World

Economic impact of cross-border tension insignificant: Indian finance minister

Arun Jaitley made the remarks while speaking at the University of Toronto

News Desk October 04, 2016

Indian Finance Minister Arun Jaitley. PHOTO: INDIAN EXPRESS

Indian Finance Minister Arun Jaitley believes cross-border tension between India and Pakistan will have an "extremely marginal" impact on the former's economy.

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Jaitley made the remarks while addressing a gathering at the University of Toronto's Rotman School of Management. He said, "Any impact that had been felt on the markets and the rupee had been temporary." Despite the tensions, he maintained that foreign direct investment into India "continues to increase."

Referring to the impact on markets of India's open declaration of conducting surgical strikes across the Line of Control (LoC), Jaitley granted that "there was obviously certain amount of speculation". However, he downplayed the consequences of this declaration and stated "it is not what it would have been years ago".

Indian, Pakistani soldiers trade fresh fire across LoC

Pakistan has rubbished Indian claims of having conducted surgical strikes across the LoC. “India’s claims of surgical strikes are baseless,” DG ISPR Asim Bajwa earlier said in a statement. “There has been no surgical strike by India, instead there had been cross border fire initiated and conducted by India,” Bajwa said.

The military’s media wing added, “As per rules of engagement same was strongly and befittingly responded by Pakistani troops.” The two nuclear-armed rivals declared a ceasefire in 2003, to maintain peace and tranquility along the LoC and the Working Boundary.

This article originally appeared on The Economic Times

COMMENTS (5)

Tony Melrose | 7 years ago | Reply @سے Shaam (Hanafi): Yes, then the US economy is the world's largest by your logic with crippling poverty and massive debt. India's economy is biggest hysteria you can actually see the poor infrastructure and poverty. We still consider India's rich? lol.

Guru Vivekanand | 7 years ago | Reply b@sil, you know nothing, I suggest look at Indian economy and its take off after Modi came to power from 2014 until today 2016 and thank you for the congratulation. Let me tell you a secret, Indians are going to vote for him again in 2019 and if he is up for 2024 then too. We plan to keep your true friends in the congress on a long long vacation.