India’s Operation Sindoor: Precision Strikes Reshape Regional Dynamics

Exactly two weeks after the Pahalgam terror attack that claimed 26 lives, India launched a bold and unprecedented military response in the early hours of May 7. Codenamed Operation Sindoor, this operation saw Indian armed forces-Army, Navy, and Air Force-carry out 24 precision missile strikes on nine terror targets across Pakistan and Pakistan-occupied Kashmir (PoK), including key Lashkar-e-Taiba and Jaish-e-Mohammed strongholds in Muridke and Bahawalpur. The strikes, conducted within just 25 minutes, reportedly killed over 70 terrorists and wounded more than 60, significantly degrading the operational capabilities of these groups.

Unlike previous cross-border actions, Operation Sindoor extended deep into Pakistan’s Punjab heartland, targeting the epicenters of terror infrastructure and sending a clear message: no part of Pakistan is off-limits when it comes to responding to terror attacks on Indian soil. The operation was described by Indian officials as “measured and proportionate,” deliberately avoiding Pakistani military assets to prevent further escalation.

Market and Economic Reactions

Indian financial markets displayed remarkable resilience in the face of heightened tensions. The benchmark indices, including the Sensex and Nifty, closed marginally higher, reflecting investor confidence in the government’s measured approach and the broader strength of the Indian economy. In stark contrast, Pakistan’s KSE-100 index plunged by as much as 5.7% before paring losses to close over 3% down, highlighting the vulnerability of its economy amid geopolitical shocks.

Analysts noted that while defence stocks in India saw some profit booking due to the de-escalatory tone of the government, the sector’s long-term prospects remain robust. Experts believe that, historically, Indian markets tend to recover quickly from such incidents, and the current episode is unlikely to trigger prolonged volatility.

Widespread Disruptions in Aviation and Tourism

The immediate fallout of the strikes was acutely felt in the aviation and travel sectors. Over 200 flights were cancelled and at least 18 airports-including Srinagar, Leh, Amritsar, and Chandigarh-were temporarily shut across northern and western India. Major airlines such as Air India, IndiGo, and SpiceJet suspended operations, while global carriers rerouted or cancelled flights to avoid the region’s airspace. The travel industry is bracing for a significant dip in both domestic and inbound tourism, with safety concerns and travel advisories prompting widespread cancellations.

Heightened Security and Cyber Vigilance

India has stepped up security measures nationwide, particularly in border states like Rajasthan, where leaves of police personnel have been cancelled and critical infrastructure is under heightened surveillance. Hydropower projects and strategic assets have activated crisis management plans, and the government has ramped up cyber defences in response to attempted attacks on key defence-linked institutions. The Computer Emergency Response Team has issued advisories to financial and critical sectors, warning of potential distributed denial-of-service (DDoS) attacks and website defacements, especially from groups based across the border.

Strategic and Economic Measures

Beyond military action, India has intensified economic pressure by suspending the Indus Waters Treaty and imposing bans on Pakistan-origin cargo and shipping through Indian ports, further straining Pakistan’s already fragile economy. These steps, combined with targeted strikes, underline a comprehensive strategy to counter cross-border terrorism and deter future attacks.

Operation Sindoor marks a pivotal moment in India’s counter-terror doctrine-combining military precision, economic measures, and digital vigilance-while maintaining a calibrated approach to avoid wider escalation. The situation remains fluid, with both nations and global markets closely monitoring for further developments.