New Delhi, May 7 -- India is expected to weather any economic shocks stemming from a potential escalation in tensions with Pakistan, experts said citing strong macroeconomic fundamentals and domestic consumption.

Indian Armed Forces launched 'Operation Sindoor' early Wednesday targeting terror bases in Pakistan and Pakistan-occupied Jammu and Kashmir in retaliation for terrorists from across the border killing several tourists in Kashmir's Pahalgam area two weeks earlier.

"In a scenario of sustained escalation in localised tensions, we do not expect major disruptions to India's economic activity because it has minimal economic relations with Pakistan," Moody's said in a recent report titled 'Sovereign-South Asia'.

The global rating age...