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Who benefits from the conflict between India and Pakistan

Welcome back guys, today we are going to look at an exciting topic. Never make a question with "what" because the answer may contain blindspots. On the other hand, questioning with "why", for example, why did it happen?, gives you a clear view. With no further delay let's get started...

Weaponry Traders

when there is a conflict between two countries, they are in great demand of weaponry. Either to defend their kin or to suppress the opposition in the warfare. By recognizing this as an advantage on the world stage, the supplier will trade the weapons in extra amounts. With the help of the revenue generated, the company gets developed. The demand for arms will create jobs so that the nation's GDP gets increased. For example, recently, IAF has received five new Dassault Rafale fighter jets amid ongoing border tensions with China. The aircraft are part of India's deal with France in 2016 to buy 36 warplanes. As you can see in the above example, Who gets the maximum gain? France. China has its weaponry, being one of the largest exporters of weapons. But India, Sorry, I can't comment on this! When it comes to Pakistan, Rus is relying more on Pakistan. Because Pakistan is a unitary state, unlike India, which has its internal state issues.


Some of the world's largest arms exporters are:


Neither Pakistan nor India stands in it. But I can proudly say that both the countries have a large youth population. Keeping our conflicts aside, Giving them proper vocational training will develop them. Don't inject false nationalism in them.


Business organizations

From a business perspective, our primary goal is to achieve profit. Apart from profit, firms also look for a peaceful environment, low labour charge, and feasible transportation. When two countries conflict. here, we may reach two possible solutions 1. The firm opens its business in the state (or) 2. The firm doesn't open its business in the state.

  1. As the conflicts continue between Pakistan and India, When the firm opens its business in the state, Foremost, both the countries seem to balance their economy. As an output, MNCs use this competition as their advantage in their further negotiations. These negotiations further lead us to globalization that opens up for other MNCs with lesser taxes paid. Also, there can be security threats.


  1. We know that war always crashes the economy similarly, conflicts do the same. As the economy falls, prices of raw material, labour charge, and transportation charge increases. The increases in the cost of raw material, labour, transportation will reduce the profit. Low gain tend companies to look for an alternative state to open their business.


Politics

We have heard of many communal riots in India. Muslims being a minority in India have undergone several problematic situations. Our media and statesman are manipulative in this regard. They used to relate extremism with the minority people(like blacks in America). Especially the media, the news nowadays shown doesn't let us think about the situation. Even during the political campaigns, politicians use biased statements regarding minorities. I hope the same happens in Pakistan. 

From the picture, it states that the majority of the Muslim community votes for congress. What does this depict? By spreading hatred upon few communities never solves the problem. But neither country doesn't see a solution other than conflict. Is this nationalism?

Other neighbours

When there is a fight between friends, the enemy will have a carnival in his backyard. The above phrase is the exact scenario with India-Pakistan and its neighbours. For example, China provides funding for infrastructure in Pakistan, hoping to debt trap Pakistan. Leave China, who actually will benefit from our conflict? 

 The developing nations around us like Vietnam, Sri Lanka, Thailand will get benefitted.



In graph1, it is clear that there is a constant growth in Vietnam's GDP since 1986. In graph2, see Vietnam's foreign direct investment(FDI) increased from zero projects to two thousand projects a year. From these graphs, it is evident that this immense growth has happened after 1971, Exactly after the Indo-Pak war. You know why? Because of the Indo-Pak conflict, The business companies got startled and started investing in Vietnam, Bangladesh.


Oil pricing

The supply and demand curve helps us in estimating the crude oil prices. Developing economies like India and Pakistan have an increase in demand for energy in general. Especially for transporting the goods from producer to consumers. An increase in oil price has a direct impact on inflation. An increase in oil price directly affects the cost of other goods and services. Oil price increases affect the macroeconomic factors of Pakistan like investment, consumption, BOP, and unemployment.


From the above table, You can see that for every rise in 10 dollars per barrel, there is a decrease of 0.43% in India's GDP.


Let us conclude this session by asking this " why does the conflict between India and Pakistan remains the same till date?"Answer this question in the comment section below. Also, let me know the topics that you like to read.



-DHARNISH


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