With disturbances across the border, there have been many speculations and debates about Indo-Pak war. The impact a war leaves on a country is irrevocable and in most cases, it can lead to a huge downfall in the country’s resources. While wars were a common thing of the past, the modern day phenomenon is a bit different and focuses mainly on the economic peace. Well, wars have also proven to be economically beneficial and have brought countries out of depression previously. But in today’s world, it doesn’t work and promotion of peace is highly encouraged, as the amount of money government reserves for public welfare will be consumed for the preparation of war. Thus, the welfare of public is highly neglected.

What will happen to currency rate after the Indo-Pak war?

There has been news doing the rounds of a possible war between India-Pakistan for quite some time now. So the most important question here is what impact will the war between India and Pakistan have on the Indian economy? From an economic perspective, it has been estimated that the war can bring down the rupee value at Rs.100 to the US dollar. The estimated cost that India will have to incur for the war would be at least Rs. 2,50,000 crores, even if the war lasts just a fortnight! It is to be noted that there has been a good flow of trade between the two countries which is likely to reduce post the war.

What about Foreign Investment post-war?

Another major drawback that the war can cause to the Indian economy is that on the Foreign Investment. Countries generally abstain from investing in war-prone countries and as a result, the Indian economy is bound to suffer. So it is here that the Indian economy can get negatively affected by the consequences of war. Several start-ups in the country will be at stake as the nature of the war is economic in nature and not military. So it is likely that the businesses are in a vulnerable state as the foreign investment will go down.

Can India economy rebuild after the war?

Statistics show that Indian economy will enjoy an upper hand against the war with Pakistan as the opponent country is very powerful (in terms of the economy), whereas, the Indian economy is huge and is growing exponentially. If the war is a conventional one without the presence of nuclear forces, then there will be less damage to both the countries. However, India can rebuild and sustain even after a nuclear war as it is powerful than Pakistan in economic aspects. Yet, wars are in no way good for any nation as it has the power to cause long term damages to the economy. Post-war consequences can be huge leading to long-term impacts and resulting in another war withing the country to bring the economy back on track.

Some of the damages Indian economy is likely to suffer as a result of war are inflation, instability in government practices, economic and political turmoil, chaos, imbalanced trade practices, depletion of resources, loss of human lives, damages to infrastructure, weak law and orders and so on and so forth. While India is a powerful nation in comparison with Pakistan, however, it is to be noted that India is still a developing nation and cannot afford a long term war. Establishment of peace and justice and settlement of disputes between both the countries can bring about prosperity in both the nations.

A war will not just lead to disturbances among the lives of people living near the border or the soldiers fighting for the country, but it will disrupt lives of all those living or related to both the countries! And the destruction caused will take many years to reach the same level at which we are today.