11

May

Hidden Cost of the India-Pakistan Clash

image

Any form of conflict extracts a heavy toll, not only in terms of human lives but also in economic and strategic terms. The recent hostilities between India and Pakistan, though falling short of a full-scale war, have proven immensely costly. Spanning just a few days since May 7, the exchange of fire, deployment of advanced weaponry, and the mobilisation of resources have had serious consequences for both nations.

The most tragic loss in this latest episode has been the death of Rajouri's Additional Deputy Commissioner Raj Kumar Thapa, killed in a Pakistani shelling incident. At least 19 other civilians have also died, with many more injured, alongside significant damage in the border regions.

Pakistan often employs low-cost strategies to provoke India, ranging from proxy warfare to drone incursions and airspace violations. Their methods, such as swarming Indian airspace with low-cost or decoy drones, force India into high-cost defensive responses. This has led to the grim joke: “Decoy Rs 10 drones trigger million-dollar countermeasures.”

The economic impact on India began almost immediately. From May 6 onward, Indian stock markets saw steep declines. The Bombay Stock Exchange (BSE) lost Rs 13 lakh crore in market value, with sharp drops of 156 points (Rs 6 lakh crore) on May 6, 412 points (Rs 5 lakh crore) on May 8, and 880 points (Rs 2 lakh crore) on May 9. Meanwhile, airspace restrictions led to the closure of 32 airports and disrupted numerous flights. Even the commercial IPL cricket tournament was suspended, adding to the financial burden.

The cost of military action is staggering. BrahMos missiles used by India cost between $2.5 million and $5.6 million each, while precision strikes using hi-tech drones can cost up to $350,000 per target, similar to Russian tactics in Ukraine. The logistics, deployment, and manning of these operations further amplify the overall cost.

 

Column at a Glance
The recent hostilities between India and Pakistan, which began on May 7, have resulted in significant human and economic costs, despite not escalating into full-scale war. The conflict has led to the tragic death of Rajouri's Additional Deputy Commissioner and at least 19 civilians, alongside extensive damage in border areas. Pakistan's low-cost provocations, such as drone incursions, force India into expensive defensive measures, impacting its economy.
Monday Matters
By Shivaji Sarkar
The Indian stock market suffered steep declines, losing Rs 13 lakh crore in value, while airspace restrictions disrupted flights and halted the IPL cricket tournament. Military expenditures are staggering, with potential daily costs of Rs 1,460 crore to Rs 5,000 crore for a short conflict. Both nations face economic strain, with India considering increased fuel duties and defence budget hikes. Historical conflicts have shown that both countries suffer equally in terms of human lives and economic potential, highlighting the need for diplomatic resolutions to ensure long-term stability.

 

Historically, even limited conflicts have proven expensive. During the 1999 Kargil conflict, India reportedly spent Rs 14.6 billion per day, compared to Pakistan’s Rs 3.7 billion. According to the UAE-based Foreign Affairs Forum, a short war today could cost India anywhere between Rs 1,460 crore and Rs 5,000 crore daily, while a prolonged conflict could see losses exceeding Rs 1.34 lakh crore ($17.8 billion) each day due to widespread economic disruption.

These costs are prompting serious economic adjustments. The Indian government is considering doubling the excise duty on petrol and diesel from Rs 2 to Rs 4, aiming to raise Rs 64,000 crore—essentially shifting part of the financial burden onto citizens. This comes in addition to a proposed 9.5% increase in the defence budget for 2025–26, which now stands at Rs 6.81 trillion (approximately $78.3 billion), though only 26.4% is allocated for new acquisitions. Pakistan, too, has increased its military budget by 18% to Rs 6.8 lakh crore, with 22% directed toward new weapons.

The economic fallout also extends to bilateral trade. Following the Pulwama attack, Pakistan’s exports to India plunged from $550 million to just $480,000. Indian exports, largely pharmaceuticals and agricultural goods, stand at around $1.2 billion, but this remains a fraction of what trade between the two nations could be. A Federation of Indian Chambers of Commerce and Industry (FICCI) report points out that Pakistan’s trade with India is minimal compared to its neighbours like Bangladesh or Sri Lanka.

A 2004 report titled Cost of Conflict by the Strategic Foresight Group estimated that tensions with Pakistan cost India about 3% of its economic potential. The report analysed all India-Pakistan wars—1948, 1965, 1971, and 1999—highlighting not just military expenditure but also the long-term costs in human lives, policy shifts, and lost opportunities.

Each confrontation has brought claims of victory, but the deeper question remains: have either India or Pakistan truly gained anything lasting, or have both suffered equally in blood, broken trust, and economic strain? For example, India secured the Peer Panjal Pass after heavy fighting, only to return it at the negotiating table. Post the 2001 Parliament attack, both countries spent over $1 billion combined just on military readiness, with total standoff costs estimated at $3 billion over a few months.

The 1971 war saw 3,843 Indian and 8,000 Pakistani soldiers die, with India capturing 93,000 Pakistani prisoners. Civilian tolls remain undocumented, but it’s estimated that at least 100,000 families were directly affected by the four wars fought since independence.

Despite sporadic efforts at peace and trade normalisation, Pakistan has often reneged on agreements and continued to support proxy warfare. A report by the Atlantic Council notes that deep-rooted mistrust continues to mar the relationship, with little progress even through regional forums like SAARC, which has remained largely ineffective for the past decade.

For long-term stability, Pakistan must be brought to the negotiating table through international and regional pressure. A low-cost conflict may suit its strategic playbook, but for India, avoiding war is essential to preserve its economy, save young lives, and protect the future of the subcontinent.

**************

  • Share:

About Us

We must explain to you how all seds this mistakens idea off denouncing pleasures and praising pain was born and I will give you a completed accounts..

Contact Us

Contact Info

  • 70, Gyan Khand- 4, Indirapuram, Ghaziabad. Uttar Pradesh.
  • +91-9810533682
  • info@mediamap.co.in
  • Week Days: 09.00 to 18.00 Sunday: Closed