India economically better equipped than Pak for war: Sinha

While stating that a war with Pakistan is the last option, Finance Minister Yashwant Sinha said on Monday that economically India is much well equipped than Pakistan to face a war.

Talking to reporters, Sinha said “war is the last option. If there is no option left, we have to prepare the nation for it. Considering the economic situation at present, we are much more prepared than our neighbouring country.” “We have to see it from a comparative angle, what is our strength, What is our enemy’s strength? Whom are we going to fight with? With whom there is a possibility of a war? If you see it from that angle, I would like to say, we are over 100 times more capable than Pakistan,” the finance minister said. Sinha, who is also a member of the Cabinet Committee on Security, however, said “whatever is the situation, either inside the country or outside, it is not favourable to the economy. If there is a fight, there is bound to be some difficulty.”

Allaying fears that GDP growth may take a hit if the Indo-Pak border tension continues, he said “who says there will be problems.” RBI Governor Bimal Jalan, who met Sinha on Monday, said he was not sure whether the war-fear would affect the economy. “I don’t know. Let’s watch,” Jalan said. The RBI Governor went on to add that “hopefully there will be no problem as the external sector is strong. Domestic liquidity positions are strong and the inflation rate is good,” Jalan said.