After Operation Sindoor, Modi Government Policies Drag India into Crisis

The failure of Operation Sindoor has pushed India into an economic and diplomatic crisis. What was meant to elevate India’s standing instead revealed its vulnerabilities. The Modi government’s policies following the operation have only worsened the situation, deepening India’s economic problems. The decisions, meant to address the fallout, backfired, leaving India in a precarious position both domestically and globally.

The Fallout of Operation Sindoor

Operation Sindoor, initially seen as a bold move, ended in failure, highlighting deep flaws in India’s military strategy. Instead of enhancing India’s international stature, the operation exposed its weaknesses. Modi’s government, rather than fixing these issues, shifted focus to economic policies that made matters worse, leaving India more vulnerable on the world stage.

📌 Operation Sindoor failed, revealing critical weaknesses in India’s strategy, damaging both its economy and diplomacy.

India’s Strategic Double-Dealings Exposed

India’s efforts to balance relations between the US and Russia during the Ukraine conflict backfired. While maintaining strong ties with Washington, India continued to buy cheap oil from Russia, which led to international backlash. The US responded with heavy tariffs on Indian goods, exposing India’s opportunistic foreign policy and damaging its reputation.

📌 India’s balancing act between the US and Russia was seen as double-dealing, damaging its diplomatic relations.

US Tariffs: A Devastating Economic Blow

In response to India’s oil dealings with Russia, the US imposed heavy tariffs on Indian exports. Starting 1 August 2025, a 25% tariff was applied, followed by a 25% increase on 27 August, bringing the total to 50%. With 55% of India’s $87 billion exports going to the US, this decision devastated India’s economy, severely affecting industries reliant on American markets.

📌 The US imposed a 50% tariff on Indian exports, crushing industries dependent on the US market.

Stock Market Chaos and Financial Panic

The tariffs sent shockwaves through India’s financial markets. The Sensex fell 849 points, closing at 80,786.54, while the Nifty 50 dropped 1.02% to 24,712. Other stock indices, including BSE Midcap and Smallcap, also saw sharp declines. The Indian rupee, under pressure, fell to 87.68 per US dollar, intensifying fears of further economic instability.

📌 India’s stock market collapsed, with the Sensex dropping by 849 points, reflecting the severity of the crisis.

Collapse of India’s Export Industries

India’s export sectors faced heavy losses. In Tripura, a hub for $16 billion in garment exports, factories shut down as orders from major retailers like Target and Walmart were canceled. Exporters in the region stated there would be no work left by September 2025. Once a thriving sector, the garment industry is now on the brink of collapse.

📌 Garment factories in Tripura shut down, with canceled orders from top retailers, signaling the collapse of India’s export sector.

Gujarat’s Diamond Industry Faces Crisis

Surat, Gujarat, which exports $10 billion worth of diamonds to the US, is in crisis. Factories now operate only 15 days per month, and workers are facing salary cuts and forced leave. This once-booming industry is now at a standstill, adding to the growing economic strain.

📌 Surat’s diamond industry is stalled, with factories working only 15 days per month, affecting millions of workers.

Shrimp Farming Industry in Trouble

The shrimp farming industry, a vital part of India’s exports to the US, has suffered due to the tariffs. Farming costs increased by 60%, while shrimp prices dropped from 60 cents/kg to 75 cents/kg. The industry, which supports 1 million workers, is now on the brink of collapse.

📌 Shrimp farming costs surged by 60%, with falling prices, leaving 1 million workers at risk.

Diplomatic Fallout: US Cancels Delegation Visit

The US, frustrated with India’s double-dealing approach, canceled a scheduled delegation visit, halting trade negotiations. This move escalated tensions between the two nations, further damaging India’s relations with the US and exposing the failures of its diplomatic strategy.

📌 The US canceled a scheduled delegation visit, signaling deteriorating diplomatic ties with India.

India’s Reputation Takes a Hit

India’s global reputation has been tarnished. Once viewed as a rising power, the country is now seen as opportunistic and unreliable. Its failure to take a firm stand on international issues, such as the Ukraine conflict, has raised doubts about its role as a global partner, severely harming its international image.

📌 India’s global reputation has deteriorated, with its role as a trusted partner now in question.

Atmanirbhar Bharat: A Misguided Effort

In response to the economic crisis, Modi’s government launched the Atmanirbhar Bharat initiative to promote self-reliance and boost domestic production. However, the initiative has fallen short of expectations, and India’s manufacturing sector remains uncompetitive globally, exposing the limits of the government’s economic approach.

📌 Atmanirbhar Bharat initiative failed, unable to boost India’s manufacturing and self-reliance.

Rising Unemployment and Economic Instability

With key industries shuttered, unemployment has surged across India. The garment, diamond, and shrimp sectors, which provided millions of jobs, are now in turmoil. As factories close and operations scale back, millions are left without work, amplifying the country’s economic instability.

📌 Unemployment is on the rise, with millions of workers in key industries like garments and shrimp farming losing their jobs.

Financial Markets in Turmoil

India’s financial markets, once a beacon of potential, are now in turmoil. Stock market losses, coupled with declining investor confidence, have led to a drop in foreign direct investment. India’s financial stability is increasingly under threat, with no clear path to recovery.

📌 India’s financial markets are in turmoil, with foreign direct investment plummeting, further deepening the crisis.

India’s International Reputation in Tatters

India’s international image has taken a severe hit. Once seen as a growing economic power, the country is now perceived as a short-term opportunist in global politics. Its failure to navigate the Ukraine conflict and its economic policies have isolated it, leaving India with a damaged global reputation.

📌 India’s global standing is severely damaged, with its international credibility now questioned by the world.

Conclusion: Modi’s Policies Lead India to Economic and Diplomatic Ruin

The consequences of Operation Sindoor and the Modi government’s subsequent actions are undeniable. India’s economy is in turmoil, with industries shuttered, millions unemployed, and financial markets in disarray. Diplomatic relations, particularly with the US, have been damaged beyond repair. Modi’s policies, marked by strategic blunders and double-dealing, have pushed India into an economic and diplomatic abyss. The road to recovery is long and uncertain, leaving India’s future both domestically and internationally in jeopardy.