In brief
As military actions loom, India employs economic pressure and soft power tactics in its rivalry with Pakistan.
Even as tensions between India and Pakistan escalate, particularly following a terrorist attack in Kashmir, India is exploring new methods of exerting influence over its rival beyond military confrontation. Amidst the looming threat of military strikes, India is significantly focusing on economic strategies to pressure Pakistan, whose economy is already under strain. In a noteworthy move, Indian officials are advocating against extending a crucial $7 billion loan to Pakistan during an upcoming International Monetary Fund meeting. This loan, described as vital for aiding Pakistan’s faltering economy and the welfare of its citizens, could be jeopardized by India's intervention. Reports suggest that India may also target alternative sources of foreign aid that could benefit Pakistan, indicating a possible escalation in its pressure tactics.Moreover, India has recently withdrawn from a river-sharing treaty established in 1960, which has traditionally protected Pakistan’s water supply. Islamabad has deemed this withdrawal an “act of war,” heightening anxieties regarding resource security amidst increasing hostilities.On the cultural front, India appears to be restricting Pakistani artists and athletes by leveraging internet controls, similarly to its previous restrictions on Chinese platforms after geopolitical clashes in 2020. This online censorship is part of a broader narrative of reducing Pakistan's visibility in India.Trade relations between the two nations are also under siege, with India announcing a severance of any ongoing commerce. However, as some Indian exporters continue fulfilling contracts amid the onslaught of diplomatic tensions, the practical effects of this trade ban remain limited, as trade volume between the nations was already low.As India's strategies unfold, it signals a new phase in the perennial struggle for influence and dominance within the region, suggesting that the conflict may extend beyond the battlefield into economic and cultural dimensions.
