New Delhi: India Inc on Thursday rallied behind the army’s “surgical strikes” across the Line of Control in Pakistan-administered Kashmir, even as the Sensex plummeted 465.28 points to end at 27,827.53 and the the Nifty nosedived 153.90 points to 8,591.25.
India’s corporate leaders, though, ruled out any negative impact on the country’s economy and trade. “Our civil and decent response in the past hasn’t been met with reciprocity, so it’s time to act tough,” Biocon Chairman and Managing Director Kiran Mazumdar-Shaw tweeted.
Industrialist Anand Mahindra, recalling an earlier tweet in which he had said “I trust our Army. They know how to pursue & retaliate” in the wake of the Uri attack, said: “I don’t need to add anything more today…”
HD Chamber of Commerce and Industry President Mahesh Gupta said there will be no impact on India’s trade and economy, adding that the volatility in the financial markets will be short-lived.
“The Indian economy has a strong bandwidth to deal with any possible aftereffects of the current state of tensions with Pakistan,” Assocham Secretary General DS Rawat said.
The chamber said 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 country’s economy “which has the capabilities to withstand any extra costs to be borne for the sake of our national security.”
Industry bodies Ficci and CII declined to comment.
Exporters’ body FIEO Director General & CEO Ajay Sahai too ruled out any negative impact on India’s trade with other countries.
Asked about the implications on India-Pakistan bilateral trade, Ajay Sahai said India’s move to review the Most Favoured Nation status accorded to its neighbour has raised some uncertainty for exporters on whether trade would normalise in the future.