Blitz Bureau
The fallout from Operation Sindoor, India’s swift and decisive response to recent provocations along the Line of Control, is being felt far beyond the Kashmir valley. This time, the impact is not confined to military posturing or diplomatic initiatives. India is deploying a newer weapon in its strategic arsenal —economic statecraft.
In the weeks following the operation, New Delhi has recalibrated its approach towards countries seen as sympathetic to Pakistan’s Kashmir narrative. Turkey, under President Erdogan, and Azerbaijan — both vocal critics of India’s position in multilateral forums — have found themselves at the receiving end. From delaying bilateral talks to slowing down trade and investment negotiations, India is sending a clear signal: geopolitical alignment now carries economic consequences.
This marks a distinct shift in India’s external affairs strategy. Traditionally reactive and diplomatically cautious, India is now exhibiting signs of assertiveness that blend military credibility with economic leverage. In a world where diplomacy increasingly overlaps with commerce, India is ready to use market access, trade preferences, and strategic partnerships as tools of reward or rebuke.
Pakistan, for all practical purposes, remains economically isolated — its economy crippled by hyperinflation, a shrinking rupee, and IMF-imposed austerity. Its GDP growth is anaemic, investor confidence is fragile, and external debt repayments loom large. India’s tightening of diplomatic channels and informal trade barriers only compounds Islamabad’s woes. Bilateral trade, already minimal, has ground to a near halt — hurting small traders in border districts and informal supply chains that once linked the two sides.
Pak & its sympathisers getting to learn a new lesson in war & trade
But the story isn’t just about punishing Pakistan or its cheerleaders. It’s also about India projecting itself as a stable counterweight in a volatile region. One example of this growing outreach is India’s decision to send a multi-party parliamentary delegation abroad to make the case against Pakistan’s terror machinery. This rare, bipartisan initiative is aimed at showcasing domestic political consensus on national security and counter-terrorism, while simultaneously influencing global opinion in key capitals — Washington, London, Paris, and beyond.
The delegation’s purpose is clear: to expose Pakistan’s continued patronage of terror groups, highlight India’s restraint and responsible conduct, and counter Islamabad’s propaganda on Kashmir. The goal is also to reassure global investors, strategic partners, and the diaspora that India remains a predictable, rule-based, and assertive democracy.
However, this strategy is not without costs. Indo-Pak tensions historically spike defence spending, especially on border security and counterterror operations. Insurance premiums for cargo movement near the western front may rise. Border states like Punjab and Jammu & Kashmir face delayed investments, particularly in tourism, horticulture, and agro-based exports, which depend on regional stability.
Still, India seems willing to bear these short-term costs for long-term strategic gain. By aligning its foreign policy more closely with its economic interests, it joins the ranks of countries like China and the US, where economic diplomacy is central to geopolitical strategy.
The message is unambiguous: India’s red lines on sovereignty and security are no longer just about soldiers and summits. They are about supply chains, shipping routes, foreign investments — and strategic perception. The new India is not just responding to threats — it is redefining the terms of regional and global engagement. In doing so, it is turning economic diplomacy into a silent force multiplier — less visible than missiles, but perhaps more enduring.