Effect of War in India and Its Impact on the Indian Economy!

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Effect of War
Effect of War

On 7th May 2025, the Indian Military executed Operation Sindoor in response to a cowardly terrorist attack in Pahalgam. The mission targeted nine terrorist camps in PoK and received overwhelming support from Indian citizens. However, in the days that followed, Pakistan forces retaliated by targeting multiple Indian cities, blatantly violating international laws. The situation has now escalated into a near-war scenario, with suicide drones striking areas across Kashmir, Jammu, Punjab, Gujarat, and Rajasthan. The Indian military is actively responding with appropriate countermeasures, but the situation remains grave. Civilians are facing casualties, injuries, extended blackouts, and full lockdowns to maintain safety. Daily life in affected states and union territories has been severely disrupted; colleges and schools have shut down, including IIM Jammu, which has suspended classes indefinitely. Flights are being rerouted, cancelled, or delayed; misinformation is spreading on social media; and cyberattacks on Indian government websites are on the rise.

In this blog, we will explore how this escalating conflict impacts Indian civilians and the economy and how it could affect students and young professionals in terms of academics, career prospects, and overall mental well-being.

How Could War Impact Indian Lives?

The ongoing conflict is undoubtedly escalating, leaving people increasingly anxious about the future. The situation is especially grave for those living in border regions and military zones

Extended Blackouts and Lockdown

Villages and cities near the border are under lockdown and experiencing frequent blackouts. Residents have been advised to stay indoors, stock up on essentials, and participate in mock evacuation drills in case of emergencies. These disruptions could lead to a rise in the prices of basic necessities, loss of time for agricultural activities, job instability, and possibly increased communal tension in the coming days.

Personal losses are rising as Pakistan continues to launch ballistic missiles, suicide drones, and shelling across the border areas. While Indian forces are effectively intercepting most air attacks, a few have struck residential zones, highlighting the enemy’s cowardly yet dangerous tactics that pose serious risks to civilians.

Misinformation and Rumors on Social Media

Recently, rumors about INS Vikrant launching attacks on Pakistani ports have gone viral. However, these claims are completely false and were likely spread to create panic or attract attention. Even more concerning is the circulation of fake government notices claiming the cancellation of board exams, suspension of job opportunities, or major security breaches, all of which are untrue.

This isn’t limited to within India, external forces are also attempting to fuel fear and uncertainty among Indian citizens for their own strategic gain.

In times like these, it’s crucial to rely only on official government sources for information. Avoid forwarding or believing in unverified news or messages from unknown sources. Stay informed, not misled.

How could war impact the Indian economy?

Although India took the place as the 4th largest economy in the world. A full-scale war can significantly affect our financial and political dynamics. 

Increased Government Spending on Defense & Firepower 

After the recent air attacks by the enemy, the Indian government is planning to strengthen its air defense systems and enhance its firepower for effective retaliation. Additionally, external support may be sought to counter ongoing cyberattacks from Pakistan and to build a more robust cybersecurity infrastructure to protect critical data.

Military spending is also expected to rise, especially in light of the recent USD 1.1 billion aid granted to Pakistan by the IMF, raising concerns that the funds could be misused to escalate conflict with India.

Foreign Investment Decline

This means foreign investors may withdraw their investments from the Indian stock market due to rising insecurity and geopolitical tensions with Pakistan. Although the market currently remains relatively stable, a prolonged conflict could create serious risks for all investors.

Delay in Air Travel and Tourism

Since Pakistan has denied airspace access to Indian flights, many international flights are now facing frequent cancellations and delays. Indian domestic flights and airports are also being affected, with some operations suspended due to the ongoing tension. This has resulted in longer flight times and increased discomfort among passengers, who are also concerned about low-altitude routes amid air attack threats. Airlines are reporting higher operational costs, which could lead to increased ticket prices in the near future.

Tourism is also affected in Northern and Eastern Indian states, as many countries have issued advisories over avoiding travelling in conflict-affected areas. 

How could war impact the Indian education system?

Although no major change has been made by the government. The Indian education system may go through these changes. 

Migrating Students and Families from Border Areas

With many schools and colleges near the border suspending classes indefinitely, the government may consider relocating students to institutions in safer regions. These areas may include schools and colleges around Jammu & Kashmir, Punjab, Rajasthan, and Gujarat. While this may be manageable for school students, relocating higher education students poses a challenge due to limited seats and resources, which are already allocated based on fixed intake numbers.

For example, IIM Jammu has suspended classes indefinitely, raising concerns about how students will continue their education if the conflict persists. 

Change in Academic Calendar & Exam Schedule

The scheduled date for government competitive exams may change, as many security personnel are currently deployed for active duty. With limited forces available to manage exam centers, exams might be delayed, conducted in multiple slots, or postponed altogether. This is likely to affect various government job recruitment exams, including result announcements and exam dates.

Additionally, the academic calendar for schools and colleges could face delays or cancellations, potentially impacting long-term academic progress for students.

Lastly, no matter what unfolds, we have full confidence in our armed forces to protect the nation. As responsible citizens, it is our duty to stay informed and support one another during this time of need. 

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