“No major disruption to growth or inflation,” says RBI chief

Reserve Bank of India Governor Sanjay Malhotra on Friday clarified that the recent military conflict between India and Pakistan had minimal impact on the country’s economic performance. The conflict followed the deadly April 22 terror attack in Jammu and Kashmir’s Pahalgam, where 26 civilians lost their lives.

In response to the attack, India launched Operation Sindoor, targeting terror infrastructure across the border, including strategic sites in Bahawalpur and Muridke. The cross-border tension led to retaliatory strikes from Pakistan and temporary disturbances in some northern Indian regions, including brief airport closures and reduced air traffic.

Despite the escalation, Governor Malhotra confirmed that India’s overall economic indicators remained stable. “There was no major supply chain disruption. Yes, prices in some areas rose briefly, but things have normalised,” he said, adding that inflation, GDP growth, and broader economic activity were not significantly affected.

Malhotra also addressed concerns about the recent rise in Covid-19 cases, saying it was currently not alarming. "It has become one of the many circulating viruses, and hopefully it remains that way," he noted.