Indo-Pak tension: Businesses brace for tough times ahead

Sectors such as automobiles, travel & tourism, retail and real estate fear severe repercussions if hostilities between the two countries intensify further

- ARSHAD KHAN @ New Delhi

ESCALATION in tensions between India and Pakistan over the past three days has begun to hamper businesses in border regions. Industry executives and experts interviewed by TNIE reported a fall in customer inquiries and footfall, as consumers prioritise spending on essential goods. Sectors ranging from automobiles, travel & tourism, and retail to real estate fear severe repercussions if hostilities between the two countries intensify further.

"If the current conflict broadens, residential absorption in Delhi-NCR and other parts of north India may see a short-term dip of between 5-10%. Luxury housing buyers tend to delay purchases in periods of uncertainty. Demand for mid-income housing will be the first to recover once normalcy is restored," said Prashant Thakur, regional director & head - research, ANAROCK Group.