Govt Assures Ample Essential Supplies, Banks to Maintain Services Amid Tensions
Amid heightened India-Pakistan tensions, the Indian government moved to reassure the public about the availability of essential goods and services. Finance Minister Nirmala Sitharaman directed banks to ensure uninterrupted customer services. Union Food Minister Pralhad Joshi warned traders against hoarding, stating ample food stocks are available. Similarly, oil companies assured sufficient supplies of petrol, diesel, and LPG, advising against panic buying. These measures aim to maintain stability and prevent shortages.
Unpacked:
The current escalation was triggered by a terror attack in Pahalgam, Jammu and Kashmir, on April 22, 2025, which killed several civilians and security personnel. This incident significantly heightened bilateral tensions and led to economic and security responses from both countries.
Sectors such as textiles, pharmaceuticals, and food commodities have been disrupted due to trade suspensions and logistical hurdles. The closure of border crossings and rerouting of cargo have increased costs and caused delays, while market volatility and a decline in foreign investment have further impacted the economy.
The government has assured the public about ample food and fuel supplies, warned against hoarding, and directed banks to maintain uninterrupted services. These measures are intended to maintain public confidence, prevent panic buying, and ensure economic stability during the crisis.[Summary]
Unlike previous conflicts, India’s much larger and more globally integrated economy now makes it more vulnerable to supply chain disruptions and capital flight. While India emerged stronger after the 1999 Kargil War, the current risks to GDP and investment are far greater due to the country’s expanded economic role.