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Financial Express Lucknow
|May 12, 2025
The ongoing tensions between India and Pakistan might lead to short-term caution among foreign investors, but industry is committed to ensuring the continued progress of economic activity, says Confederation of Indian Industry (CII) president Sanjiv Puri.
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In an interview with Mukesh Jagota, Puri, who is also the MD of conglomerate ITC, spoke about tariff wars, free trade agreements, corporate investment activity, consumption demand and other growth drivers.
Excerpts: How do you see India-Pakistan tensions impacting economy and trade?
The CII welcomes the announcement of the ceasefire between India and Pakistan and commends the government for its impactful yet measured diplomatic and security response to recent hostilities. It is too early (to comment on the impact), but I would say that the Indian economy is far more resilient and will be able to sustain its performance. Regardless of any challenges that may arise, the economy will rebound. Industry remains firmly committed to ensuring that economic activity progresses.
Is there a prospect of a further slowdown in foreign investment?
Some short-term caution may emerge, but it does not alter the long-term outlook. Ultimately, investment decisions will be driven by the fundamentals of the Indian economy, the opportunity in the Indian market and its growing role as a global source, bolstered by recent economic reforms and trade agreements, which continue to strengthen these opportunities.
How does the industry view the ongoing global tariff measures and the challenges they pose?
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