Daijiworld Media Network – New Delhi

New Delhi, Jun 6: Reserve Bank governor Sanjay Malhotra on Friday said that the recent India-Pakistan conflict, which followed the deadly Pahalgam terror attack, had only a minimal effect on the nation’s economy.

Referring to the April 22 attack in Pahalgam that left 26 civilians dead, Malhotra noted that although Indian armed forces responded with precision strikes on terror hubs in Pakistan and PoK under Operation Sindoor, economic activity remained largely unaffected.

“The conflict had a very, very limited, negligible impact on economic activity,” he said. “There was some effect during those few days, especially in northern India where airports were closed and air passenger traffic dipped. But there were no major supply chain disruptions.”

Indian forces had launched missile strikes on May 7 targeting nine terror bases, including Jaish-e-Mohammad's stronghold in Bahawalpur and Lashkar-e-Taiba's base in Muridke. Pakistan responded with counterattacks, affecting several bordering districts.

Despite these developments, Malhotra asserted that the situation did not disturb the broader economic environment. “There was a brief rise in prices in certain regions and sectors, but everything has now normalised. There’s no major impact on growth or inflation,” he assured.

On the recent spike in Covid-19 cases, Malhotra said there was no cause for alarm. “It has become one of the many viruses we deal with, and hopefully, it stays that way,” he added.