Economic cost of war for India

India and Pakistan have been effectively at war since last Wednesday. And the war takes its toll on all involved: both the aggressors and their targets. The ongoing military conflict between India and Pakistan will indeed leave an adverse impact on the latter’s fragile, recovering economy, but it will not spare India’s either. The heavy costs of the conflict for India will extend far beyond the battlefields and severely undermine its longstanding ambition to position itself as a global economic powerhouse and attractive destination for companies looking to shift production from China. The military damage would be nothing compared to the losses India’s economy would have to bear. Finance Outlook India has argued that the military funding decisions of India and Pakistan reflected their economic objectives. India will spend $80 billion in 2025 to modernise its military forces. Pakistan’s defense expenditures are projected to reach $11bn which places financial strain on its struggling economy.