As of May 8, 2025, the conflict between India and Pakistan has attracted global attention, having profound impacts on geopolitical stability and economic markets. Below is an economic analysis of this conflict:

⸻

🌏 Global Economic Impact: Supply Chain and Food Security Risks

• Disruption of food supply chains: India and Pakistan are the world's first and fourth largest rice exporters, respectively. The conflict may lead to export disruptions, posing risks of rising food prices and supply shortages for Southeast Asian countries that rely on imports, such as Malaysia, Singapore, and Indonesia.

• Energy and manufacturing supply chain risks: A prolonged conflict may affect energy transportation and manufacturing supply chains in the South Asian region, further disrupting global trade and exacerbating inflationary pressures.

⸻

🧭 International Community Response and Outlook

• Diplomatic calls for de-escalation: Countries such as the United States, the United Kingdom, China, and Turkey have called for both sides to exercise restraint to avoid escalation of the conflict. However, neither side has shown a willingness to ease tensions, increasing the risk of regional instability.