Indian Prime Minister Narendra Modi’s aggressive posture against Pakistan in the wake of the Pahalgam incident is now proving costly for his own country’s economy, particularly the aviation sector.

In an attempt to exert pressure on Pakistan, Modi’s government has inadvertently triggered a severe backlash on India’s own aviation industry. With Pakistan closing its airspace to Indian carriers, nearly 400 flights a day have been impacted, resulting in significant losses to India’s top airlines, including Air India, Air India Express, and IndiGo.

According to reports, over 100 Indian aircraft use Pakistani airspace daily. The rerouting via the Arabian Sea has drastically increased travel time and fuel consumption, raising operational costs across the board. As a result, Air India alone has incurred losses of INR372 crore (approx. INR6 crore per day) this month.

The shutdown has also led to the cancellation of Delhi-Kabul flights and disrupted major routes between Indian cities such as Delhi, Mumbai, and Bengaluru, and UAE destinations including Dubai, Abu Dhabi, and Sharjah. Passengers are now facing higher fares and extended flight times, placing additional financial burdens on travellers.

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Furthermore, India’s trade with Pakistan through the Wagah border, amounting to INR3,886 crore during 2023–24, has now come to a halt, exacerbating the economic strain.

Indian media has warned that these decisions could have long-term consequences. The Indian aviation industry, once considered among the fastest-growing globally, is now projected to require 30,000 new pilots over the next 20 years, but the current disruptions threaten this trajectory.

With airlines burning INR700 more per kilo-litre on fuel, and needing 2,500–3,000 extra kilograms of fuel per flight, Indian aviation appears to be paying a steep price for political decisions that have now backfired, both strategically and economically.

As critics point out, Modi’s attempt to block Pakistan’s water may have instead choked India’s economic arteries.

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