Operation Sindoor unlikely to hit India’s international trade; impact on equities may be short-lived, say experts

While the cross-border strikes marked a bold response to terrorism, market strategists say India’s trade relationships remain secure.

India’s targeted military strikes under Operation Sindoor—a retaliation to the April 22 Pahalgam terror attack—may have stirred geopolitical tensions, but experts believe the action is unlikely to disrupt the country’s global trade or investor confidence. At the other end, the timely announcement of the India-UK Free Trade Agreement (FTA) adds a layer of economic reassurance, offering a counterbalancing economic signal.

While the cross-border strikes marked a bold response to terrorism, market strategists say India’s trade relationships remain secure. "It is very unlikely to have any impact on India's international trade," said Kranthi Bathini, Director – Equity Strategy at WealthMills Securities. He said that key partners such as the UAE continue to share strong bilateral ties with India, and that “operations like Operation Sindoor are not expected to affect trade dynamics.”

India’s growing stature in the global economy is also a key factor in maintaining trade stability. “India is a much stronger and larger economy now, and also an important player in global affairs,” Bathini said, adding that past comparisons are less relevant in today’s context. “Overall, the impact on trade will be negligible.”#IndianBudget