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India’s Economic Resilience Amid Geopolitical Challenges

India remains steadfast in its commitment to economic growth despite recent military tensions with Pakistan, according to Shilpak Ambule, India's High Commissioner to Singapore. Speaking on CNBC’s “Inside India,” Ambule reassured that while the country remains on “operational alert” due to the ongoing conflict, the nation’s economic trajectory remains unaffected.

“Everybody is on operational alert. But that does not mean that our India growth story and focus on the economy get affected,” Ambule stated. Despite the security concerns, airports have resumed normal operations, and travel within India remains safe, he added.

Economic Momentum Continues Despite Tensions

The backdrop to Ambule’s remarks includes heightened military activity between India and Pakistan, including missile and drone exchanges. The situation escalated after New Delhi launched military strikes against Pakistan in response to a terrorist attack on May 9 in Pahalgam, Kashmir province, which resulted in the death of 25 Indian nationals and a Nepalese citizen. Pakistan retaliated with missile and drone attacks, prompting both nations to agree to a ceasefire by the end of the week.

Despite this volatile situation, India’s economic ambitions remain intact. In a recent development, the country successfully concluded a trade deal with the United Kingdom, strengthening bilateral economic ties. Additionally, ongoing trade negotiations with the United States and the European Union are progressing, though no specific timeline has been established.

Ambule noted that while finalizing trade terms with the U.S. remains challenging, both sides have maintained active dialogue. “The terms of reference have been agreed to and signed, and negotiations are actively continuing,” he added.

Investor Confidence Remains Strong

Amid geopolitical uncertainties, investor sentiment towards India remains positive. Mohit Mirpuri, an equity fund manager at SGMC Capital, told CNBC that structural reforms, resilient domestic demand, and strong macroeconomic fundamentals continue to offer an optimistic outlook for the Indian economy.

“Despite the noise from geopolitical developments, the underlying economic story remains robust. Investors are more focused on India’s long-term growth potential,” Mirpuri remarked.

India’s consistent push for structural reforms and economic stability has helped maintain investor confidence, even as external threats persist.

Operation Sindoor: Defining India’s Counter-Terrorism Stance

Indian Prime Minister Narendra Modi addressed the nation following the military strikes, describing the operation—dubbed “Operation Sindoor”—as a pivotal moment in India’s counter-terrorism strategy. Modi emphasized that India would not differentiate between terrorist groups and nations that support them, explicitly condemning Pakistan for allegedly harboring terror infrastructure.

“If Pakistan wants to survive, it must dismantle its terror infrastructure. There is no other path to peace,” Modi asserted.

When asked whether the ceasefire would hold, Ambule responded, “The ball is in Pakistan’s court.” His statement reflects the Indian government’s stance that Pakistan must take concrete steps to eliminate terrorism for long-term peace.

Trade Relations Take Precedence

Despite the challenging geopolitical landscape, India’s focus on international trade remains unwavering. The recently concluded trade deal with the UK marks a significant milestone, and talks with the U.S. and EU signal India’s commitment to expanding its global economic footprint.

With trade policies being a cornerstone of India’s growth strategy, the government is keen on maintaining momentum despite external challenges. Ambule reiterated that ongoing reforms and economic initiatives are designed to position India as a global economic leader, regardless of regional security dynamics.

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India’s resilience amid political turbulence underscores its commitment to economic growth and global partnerships. While geopolitical tensions with Pakistan persist, New Delhi continues to prioritize trade negotiations and structural reforms to bolster its economic future. As the country navigates these dual challenges, both the government and investors remain optimistic about India's long-term economic trajectory.

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