India carried out the successful infiltration of nine terrorist camps on May 7 under Operation Sindoor following escalating geopolitical tensions between India and Pakistan. Harsh Goenka, the Chairman of RPG Group, cautioned in a social media post on X about “economic tremors” as “Indo-pak” tensions worsened after the Operation. Tapping into the economic impact, he stated five most-affected economic parameters.
He listed how the “Rupee may wobble” after these geopolitical tensions potentially India’s impacting internal conditions. As per Goenka, “foreign investors flee to safer shores” when tensions are detected. However, users under the post chose to differ and viewed it as a “transformative phase for the country” mentioning the recent India-UK Free Trade Agreement. Goenka further foresees how the oil prices were likely to “spike” as “defence spending shoots up”. The post comes in considering that Operation Sindoor might turn into a full-fledged war. However, the situation has been currently contained by the Indian forces.
Let’s be careful:
If Indo-Pak tensions escalate, brace for economic tremors:
– Rupee may wobble
– Foreign investors flee to safer shores
-Oil prices could spike
– Defence spending shoots up, infra takes a backseat
– Markets dive.
War weakens economies. Even for the winner.— Harsh Goenka (@hvgoenka) May 7, 2025
“War weakens economies. Even for the Winner”
His last point predicted how “markets may nosedive” pointing at the economic cost of war. As per past-trends Nifty fell twice since Indo-pak tensions rose in 2001 and 2016 after the Parliament attack and Uri, respectively. Following Operation Sindoor, the NSE sensex index opened barely 692 points lower and flatlined in the latter part of the day. Similarly, NSE Nifty 50 index saw a 146 point fall. The Pakistan Stock Exchange, too, crashed at 5.5%.
The post received over 300 comments as some starkly negated the claims made by Goenka. Taking Trump’s tariff tantrum into account, a user stated that oil prices might actually be kept under control. While some paid heed to the warning, most people negated an actual possibility of war and said that Operation Sindoor “will de-escalate war tensions”.