On April 22, 2025, a horrifying act of violence shook the peaceful valley of Pahalgam in Jammu and Kashmir. In what authorities are calling one of the deadliest attacks on civilians in recent years, five heavily armed militants ambushed a group of tourists in Baisaran Valley, a spot popular with trekkers and adventure seekers.
The attackers, believed to be affiliated with Pakistan-based militant outfits, targeted a civilian convoy largely made up of Indian nationals. Armed with automatic weapons and grenades, they launched a brutal assault. Witnesses say the militants separated the men from the women and children. Some victims were reportedly subjected to tests to verify their religious identity before being executed. By the time the gunfire stopped, 26 people — 25 Indians and one Nepalese national — had been killed.
The militants, familiar with the tough terrain, managed to flee into the thick forests surrounding the valley, slipping past security forces in the chaos. As authorities scrambled to launch search operations, the attack sent shockwaves across the nation and beyond.
For a country already grappling with security challenges in Kashmir, this attack marked a disturbing escalation, reigniting old fears about cross-border terrorism and throwing a spotlight once again on the vulnerability of civilians in conflict zones.
In the hours and days following the Pahalgam massacre, India moved quickly and firmly across multiple fronts — diplomatically, militarily, economically, and internationally.
One of the first steps New Delhi took was summoning Pakistan’s High Commissioner to lodge a strong formal protest. India demanded that Pakistan act immediately against militant groups operating from its soil, holding Islamabad directly responsible for harbouring terrorism.
In an unprecedented move, India also expelled Pakistan’s military attaché — a clear sign that diplomatic niceties would no longer be a shield against acts of terror.
But perhaps the boldest move was India’s suspension of the Indus Waters Treaty — a historic agreement brokered in the 1960s that had survived multiple wars between the two neighbours. By putting the treaty on hold, India sent a powerful message that strategic assets were now on the table.
To add further pressure, India shut down the Attari-Wagah land border, effectively halting trade and civilian crossings between the two countries.
Alongside its diplomatic action, India reinforced military deployments across the Line of Control (LoC) and key areas in Kashmir. Security forces launched aggressive search operations in and around Pahalgam, supported by air surveillance and special forces.
Counter-terror operations extended to broader areas of Jammu and Kashmir, targeting known militant hideouts. Some operations reportedly crossed into territories under Pakistani control, though official confirmation remains tightly guarded.
Within India, authorities kicked off a major counter-terrorism crackdown. Police and intelligence agencies across several states detained dozens of suspects with alleged links to militant groups.
In Kashmir, homes and buildings suspected of sheltering militants were demolished. Curfews were imposed in sensitive areas to prevent further violence, and additional troops were deployed to maintain order and prevent communal flare-ups.
Increased patrolling, drone surveillance, and tighter checkpoints became the new normal in the days following the attack.
Recognising the potential for financial networks to fund terrorism, India moved to shut down avenues of cross-border trade that could provide militants with resources. Closing the Wagah border and suspending trade routes was a calculated blow aimed at hitting Pakistan economically.
Back home, the government promised financial support for local businesses in Pahalgam and nearby areas whose livelihoods depend on tourism — a sector now under severe stress.
Plans are underway to provide special security arrangements for tourists, including fortified checkpoints and guided trekking routes, to rebuild confidence in Kashmir’s tourism economy over the long term.
India also stepped up its engagement with the global community, submitting dossiers to the United Nations and key international human rights bodies outlining Pakistan’s alleged complicity in cross-border terrorism.
New Delhi appealed for stronger international action against terror financing networks and called on global powers to hold Pakistan accountable for allowing militant groups to operate freely from its territory.
The message was clear: terrorism wasn’t just India’s problem. It was a threat to global security.
Already fraught, relations between India and Pakistan took another serious hit after the Pahalgam attack.
India has long accused Pakistan of using terrorism as an instrument of state policy, and this attack only hardened that perception. Pakistan, while condemning the attack and calling for restraint, once again denied any involvement. But for many in India, Islamabad’s words ring hollow against the weight of past betrayals.
The suspension of the Indus Waters Treaty and the closure of the land border marked the most serious escalation in recent memory. The economic impact of these moves will be felt on both sides, but particularly in Pakistan, where the economy is already under strain.
Meanwhile, global powers have expressed concern over the possibility of heightened military confrontation between two nuclear-armed neighbours. Calls for dialogue and de-escalation have come from multiple quarters, but India’s stance remains clear: the issue is terrorism first. Dialogue can only follow action against militant groups.
Kashmir’s tourism industry — already fragile from years of conflict — has been devastated.
Adventure tourism, once a growing sector thanks to trekking, rafting, and camping activities, came to an abrupt halt. The Jammu and Kashmir Forest Department quickly suspended all trekking activities across the valley to avoid putting more lives at risk.
For local guides, hoteliers, artisans, and small business owners, the financial losses have been immediate and severe. Entire families dependent on seasonal tourism now face an uncertain future.
Despite government assurances of financial aid, rebuilding tourist confidence in the region will be a slow and difficult process.
The stock markets, sensitive as ever to geopolitical tensions, reacted swiftly:
Key indices dipped, especially stocks in the tourism, hospitality, and retail sectors.
Investors pulled back from risky assets, and sectors dependent on consumer confidence took a hit.
The Indian rupee weakened against the US dollar, trading around 85.45 as concerns over regional instability spooked currency traders.
Closing the Wagah border will have knock-on effects on cross-border industries:
Textiles, agricultural goods, and electronics sectors will be among the worst hit.
Supply chains that depended on cross-border trade routes are now scrambling to find alternatives.
Indian exporters could face losses, while Pakistan’s already high trade deficit may worsen.
The broader South Asian trade environment — often held hostage to political tensions — will remain under pressure for the foreseeable future.
The growing instability is likely to scare off investors, especially in Jammu and Kashmir. Already struggling to attract major private investment due to its location and security concerns, the region now faces an even steeper climb.
Infrastructure projects in Kashmir — from road development to tourism initiatives — could be delayed as funds are redirected toward defence and security preparedness.
The Pahalgam terror attack has changed the conversation in India — and perhaps the region — once again. India’s tough and immediate response signals a shift toward a more assertive, less patient posture when it comes to cross-border terrorism.
But while security remains the top priority, the attack has also exposed how fragile the peace is, and how economic hopes for Kashmir can be derailed in a matter of hours.
Going forward, India faces a twin challenge: ensuring that its citizens are safe, and finding ways to restore trust in Kashmir’s economy and future. Balancing military readiness with the need for long-term development will not be easy.
For now, the mood in India is grim but determined. The attack at Pahalgam may have left deep scars, but it has also strengthened the country’s resolve to confront terror, wherever it comes from, with clarity and force.
