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

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

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



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".



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