The tension in the Middle East has increased uncertainty, with defence manufacturers being the only beneficiaries. For most others, this situation spells economic bad news. Iran’s recent attack has not received condemnation from China or Russia, both Security Council members. The United States, the sole dissenter, has vetoed repeated UN resolutions calling for Israel to stop bombing Gaza. Israel’s response to the Hamas terrorist attack on October 7 has been shockingly disproportionate, resulting in the deaths of over 30,000 Palestinians, mostly civilians, including women and children.
Unfortunately, there seems to be no end in sight for Israel’s attacks on Gaza, much like the ongoing bombing in Ukraine. The war clouds continue to grow darker and thicker, drowned out by warmongers while peace advocates struggle to be heard. Leaders have failed to bring any sense of sanity, let alone ceasefire or peace talks. This turbulent situation does not bode well for the Indian economy, which is already grappling with challenges such as inflation, stagnant private investment, high youth unemployment, and widening inequality.
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