Risk Radar Newsflash | Geopolitical Flashpoint: Navigating Global Services Delivery Amid the India–Pakistan Escalation
On April 22, 2025, tensions between India and Pakistan escalated sharply after a terrorist attack in Pahalgam, Jammu and Kashmir, that killed 26 civilians. India accused Pakistan of supporting terrorism over the years, while Pakistan denied involvement and called for an international investigation. Despite the unrest, India’s IT-BPO services sector remains resilient, with no immediate disruption.
In response to the attack, both countries suspended key agreements, expelled diplomats, and closed major trade routes, dismantling decades of diplomatic and economic ties. While India’s business environment remains stable, Pakistan’s economy is showing signs of stress.
This Risk Radar analyzes the evolving geopolitical situation, its macroeconomic impacts, implications for the global services industry, and key considerations for global companies operating in India.
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