Despite tensions in Pakistan, India's growth story remains intact

Motorists are driving while gathering on Mumbai’s city skyline on September 26, 2024. (punit paranjpe/afp photography)

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The country's high commissioner of Singapore, Shilpak Ambule, said India continues to pay attention to its growth despite tensions with Pakistan.

"Everyone is on operational alert. But that doesn't mean our Indian growth story and economic concerns are affected," Ambule said of CNBC's "Inside India" that the airport has resumed operations and can travel to India safely.

Ambule said the country had just reached a trade agreement with the UK and negotiations with the United States and the EU on the trade agreement were at an advanced stage.

He added that with the U.S. “It’s hard to negotiate for trade, a very difficult timetable,” officials from both sides have been meeting regularly. “The reference clause has been agreed and signed and negotiations have been actively carried out.”

Investors have been sticking with India’s story, optimism about its growth prospects shortening geopolitical fears.

"Structural reforms, resilient domestic demand and strong macro fundamentals continue to provide compelling cases," SGMC Capital's equity fund manager Mohit Mirpuri told CNBC last week.

Ambre's comments were made late Monday in a speech by Indian Prime Minister Narendra Modi on Operation Sindor, New Delhi launched a military strike against Pakistan last week. Islamabad retaliates with missiles and drones.

The countries agreed to a ceasefire on Saturday. Asked if the ceasefire would take place, Ambule told CNBC that the ball was in the court in Pakistan.

Modi said in his speech that the action now defines India's new counter-terrorism policy, adding that the country cannot distinguish "the government holding terrorism from the terrorists themselves", accusing Pakistan of hiding terrorists.

"If Pakistan wants to survive, it must remove its terror infrastructure. There is no other way to peace," Modi said.

On May 9, India launched a strike against Pakistan and its so-called Pakistan-occupied Jamu and Kashmir against "terrorist infrastructure." The Indian government said it was a response to a terrorist attack by militants from Pahargham, a tourist town in Kashmir Province, killing 25 Indian nationals and a Nepali citizen.

- Ganesh Rao of CNBC contributed to this report.