On April 22, 2025, a terrorist attack in the Baisaran Valley near Pahalgam, Jammu and Kashmir, resulted in the deaths of 26 Hindu tourists and injuries to over 20 others. The assailants, armed with M4 carbines and AK-47s, reportedly separated victims based on religious identity before opening fire. The Resistance Front (TRF), believed to be an offshoot of the Pakistan-based Lashkar-e-Taiba, initially claimed responsibility, citing opposition to non-local settlements in Kashmir. However, TRF later retracted this claim, alleging a communications breach.

In response to the attack, the Indian government took several significant actions. On April 23, India suspended the Indus Waters Treaty with Pakistan, a pivotal agreement governing water sharing between the two nations. Additionally, India closed the Wagah-Attari border, expelled Pakistani military advisors, and launched airstrikes on alleged terrorist sites within Pakistan. These measures led to retaliatory strikes from Pakistan, escalating tensions between the two countries.

A U.S.-brokered ceasefire was reached on May 10, 2025, after four days of conflict. Despite the ceasefire, sporadic clashes have continued. On May 13, Pakistan reported 51 fatalities, including 11 military personnel and 40 civilians, due to ongoing skirmishes. Pakistan reiterated its commitment to the ceasefire but warned of a firm response to any future aggression.

The attack and subsequent events have had profound social and economic impacts. Tourism in Jammu and Kashmir has declined significantly, with many tourists canceling trips and local businesses suffering losses. Communal tensions have heightened, leading to protests and calls for increased security measures. Residents near the Line of Control have faced displacement due to ongoing skirmishes, exacerbating humanitarian concerns.

Indian Prime Minister Narendra Modi condemned the attack, stating, "This is an act of cowardice, and those responsible will face the full force of our security apparatus." Pakistani Defense Minister Khawaja Asif dismissed allegations of Pakistan's involvement, stating, "This is all home-grown; there are revolutions in different so-called states against India."

The suspension of the Indus Waters Treaty and expulsion of diplomats have further strained India-Pakistan relations, with both nations accusing each other of violating international norms. The conflict threatens Pakistan's fragile economy, which has only recently started recovering from a severe downturn. The conflict has already caused market instability and could jeopardize international financial aid and economic reforms.

Prior to 2025, significant terror attacks in Jammu and Kashmir included the 2016 Uri attack and the 2019 Pulwama attack. India blamed Pakistan-based militants for both incidents and conducted retaliatory strikes. The Pahalgam attack represents a continuation of this pattern, with escalated military and diplomatic responses.

The recent events underscore the fragile nature of India-Pakistan relations and the potential for rapid escalation following terrorist incidents. Sustained diplomatic efforts and international mediation are crucial to address the root causes of conflict and prevent future escalations.