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The Kashmir Issue is the basis on which India-Pakistan Relations depend in various aspects. Discuss.

Komal Batool

Komal Batool, Sir Syed Kazim Ali's student, is an emerging writer at Howtests.

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3 December 2025

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This comprehensive article analyzes how the Kashmir dispute fundamentally underpins India-Pakistan relations across political, security, diplomatic, and economic dimensions. Originating from the 1947 partition, the conflict over Jammu and Kashmir has led to multiple wars and persistent distrust. It examines the competing national narratives, the impact of India's 2019 abrogation of Article 370, and the perilous nuclear dimension. The article further explores diplomatic stalemates, the paralysis of regional forums like SAARC, and the significant economic costs, including the devastation of Kashmir's local economy and the burden of defense spending. It concludes by identifying key challenges to resolution and proposing pathways for sustained dialogue, confidence-building, and people-to-people contact to foster a more stable future in South Asia. 

The Kashmir Issue is the basis on which India-Pakistan Relations depend in various aspects. Discuss.

                  Outline 

  1. Introduction
  2. Historical Roots and Genesis of the Dispute
  • 2.1 The Partition Plan and the Princely States
  • 2.2 The Unique Case of Jammu and Kashmir
  • 2.3 The Tribal Invasion and the Instrument of Accession (1947)
  • 2.4 Conflicting Narratives and Legal Arguments
  • 2.5 UN Intervention and the Line of Control (LoC)
  • 2.6 Simla Agreement (1972) and Lahore Declaration (1999)   

3. Political Implications  

  • 3.1 Competing National Narratives and Ideologies
  • 3.2 Domestic Politics and Electoral Impact 
  • 3.3 The Abrogation of Article 370 (2019) as a Paradigm Shift
  • 3.4 Persistent Trust Deficit and Dialogue Deadlocks 

4. Security and Military Implications  

  • 4.1 Wars and Proxy Conflicts 
  • 4.2 Militarization and Exorbitant Defense Spending
  • 4.3 The Nuclear Dimension as an Escalation Ladder
  • 4.4 Cross-Border Terrorism and Insurgency  
  • 4.5 Water Security and the Indus Waters Treaty 

5. Diplomatic and International Implications  

  • 5.1 Internationalization vs. Bilateralism
  • 5.2 Impact on Multilateral Forums 
  • 5.3 Role of Major Global Powers
  • 5.4 Human Rights Diplomacy    

6. Economic Implications  

  • 6.1 Lost Economic Potential and Trade Barriers
  • 6.2 Burden of Exorbitant Defense Spending
  • 6.3 Devastation of Kashmir's Economy
  • 6.4 Deterrent to Foreign Investment    
  • 6.5 CPEC and Geopolitical-Economic Intersections   

7. Challenges to Resolution  

  • 7.1 Deep-Seated Trust Deficit and Historical Baggage 
  • 7.2 Maximalist and Inflexible Positions 
  • 7.3 Domestic Political Constraints and Public Opinion
  • 7.4 Role of Non-State Actors and "Spoilers"
  • 7.5 Lack of Sustained and Meaningful Dialogue 
  • 7.6 Evolving Geopolitical Landscape and External Influences
  • 7.7 Internal Divisions within Kashmir   

8. Pathways to Resolution and Recommendations  

  • 8.1 Sustained and Uninterrupted Dialogue 
  • 8.2 Robust Confidence Building Measures (CBMs) 
  • 8.3 Prioritizing Humanitarian Aspects and People-to-People Contact
  • 8.4 Economic Cooperation as a Bridge to Peace  
  • 8.5 Role of the International Community  
  • 8.6 Exploring Innovative Solutions and Moving Beyond the Zero-Sum Game 

9. Conclusion  

1. Introduction 

The Kashmir conflict, a territorial and political dispute over the former princely state of Jammu and Kashmir, stands as the most enduring and volatile flashpoint in South Asia. Since the tumultuous partition of British India in 1947, this unresolved issue has fundamentally shaped the trajectory of relations between India and Pakistan, two nuclear-armed neighbors. Far from being an isolated disagreement, Kashmir has permeated every conceivable aspect of their bilateral engagement from political discourse and security postures to diplomatic maneuvers and economic cooperation. For aspirants, a profound and nuanced understanding of the Kashmir issue is indispensable. It demands a comprehensive, analytical, and balanced perspective that delves into its historical complexities, multi-dimensional implications, and the formidable challenges to its resolution. This extensive article aims to provide a meticulous and in-depth examination of how the Kashmir issue forms the foundational basis upon which India-Pakistan relations depend. It will dissect the historical genesis of the dispute, meticulously elaborate on its profound political, security, diplomatic, and economic ramifications, identify the persistent impediments to a peaceful settlement, and finally, propose a range of pathways and recommendations for fostering a more stable and cooperative future in the subcontinent. Drawing upon historical facts, contemporary developments, and the prevailing narratives from both sides, this analysis seeks to equip aspirants with the critical tools and comprehensive knowledge required to articulate well-reasoned and insightful arguments on this pivotal subject.

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2. Historical Roots and Genesis of the Dispute 

The origins of the Kashmir dispute are deeply intertwined with the chaotic and contentious process of the partition of British India in 1947. Understanding these foundational events and the conflicting interpretations surrounding them is paramount to grasping the enduring nature of the conflict. 

2.1 The Partition Plan and the Princely States 

In 1947, the British decision to grant independence to India simultaneously involved the partition of the subcontinent into two sovereign states: the secular, Hindu-majority Union of India and the Muslim-majority Dominion of Pakistan, based on the Two-Nation Theory. Alongside British India, there were over 560 princely states, which had enjoyed a degree of autonomy under British paramountcy. The Indian Independence Act of 1947 stipulated that paramountcy would lapse, and these states would be free to accede to either India or Pakistan, or theoretically, remain independent. While the British advised rulers to consider geographical contiguity and the communal composition of their populations, the ultimate decision rested with the princes themselves. This provision, intended to facilitate a smooth transfer of power, inadvertently sowed the seeds of future conflicts, most prominently in Kashmir. 

2.2 The Unique Case of Jammu and Kashmir 

Jammu and Kashmir (J&K) was the largest of these princely states, boasting a unique geographical and demographic profile. Strategically located at the crossroads of Central and South Asia, it shared borders with both newly formed dominions, as well as Afghanistan and China. Its population was diverse. The Kashmir Valley was overwhelmingly Muslims approximately 77% in the 1941 census, Jammu had a Hindu majority, Ladakh was predominantly Buddhist, and Gilgit-Baltistan was also predominantly Muslim. The ruler, Maharaja Hari Singh, a Hindu Dogra, initially entertained ambitions of remaining independent, a stance that was politically precarious given the state's demographics and its contiguity with both India and Pakistan. 

2.3 The Tribal Invasion and the Instrument of Accession (1947) 

The Maharaja's indecision and the simmering discontent among the Muslim population, particularly in the Poonch region, created a volatile internal situation. In October 1947, an armed tribal invasion, reportedly supported and facilitated by Pakistan, commenced from Pakistan's North-West Frontier Province into Kashmir. These tribal forces, along with local rebels, rapidly advanced towards Srinagar, the state capital. Faced with the imminent collapse of his rule and the threat to his capital, Maharaja Hari Singh appealed to India for military assistance. 

On October 26, 1947, the Maharaja signed the Instrument of Accession, conditionally acceding Jammu and Kashmir to the Indian Union. The key conditions stipulated that J&K would retain autonomy in all matters except defense, foreign affairs, and communications. India immediately airlifted troops to defend Srinagar, successfully pushing back the tribal invaders. 

2.4 Conflicting Narratives and Legal Arguments 

The legality and legitimacy of this accession remain the core point of contention, underpinning the conflicting national narratives. 

  • India's Stance: India asserts that the Instrument of Accession was a legal, unconditional, and constitutional act, making J&K an "integral and inalienable part" of the Indian Union. It argues that the Maharaja, as the sovereign ruler, had the legal authority to accede. India views the tribal invasion as an act of aggression by Pakistan, violating international law and necessitating India's military intervention at the request of the legitimate ruler. India also points to the subsequent ratification of the accession by the Jammu and Kashmir Constituent Assembly.
  • Pakistan's Stance: Pakistan vehemently rejects the validity of the accession, arguing that it was obtained under pressure and did not reflect the will of the predominantly Muslim Kashmiri people, who, by the logic of partition, should have joined Pakistan. Pakistan highlights the pre-existing "Standstill Agreement" with the Maharaja, which it claims India violated by sending troops. Pakistan views the tribal movement as an indigenous uprising of Kashmiris against the Maharaja's oppressive rule, which Pakistan merely supported morally and politically. It also emphasizes the UN resolutions calling for a plebiscite. 

2.5 UN Intervention and the Line of Control (LoC) 

The conflict escalated into the First Indo-Pakistani War (1947-48). India, under Prime Minister Jawaharlal Nehru, took the Kashmir dispute to the United Nations Security Council (UNSC) on January 1, 1948, under Article 35 of the UN Charter, complaining of Pakistan's aggression. The UNSC, through resolutions like 47 (1948), 51 (1948), 80 (1950), 91 (1951), and 98 (1952), called for: 

  • A ceasefire.
  • The withdrawal of Pakistani forces from the entire state.
  • A reduction of Indian forces to a minimum necessary for law and order.
  • A free and impartial plebiscite under UN supervision to ascertain the wishes of the Kashmiri people regarding accession to either India or Pakistan. 

A ceasefire came into effect on January 1, 1949, establishing a ceasefire line. This de facto boundary divided Kashmir into Indian-administered Jammu and Kashmir (J&K) and Pakistan-administered Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan (GB). However, the plebiscite, central to the UN resolutions, never materialized due to fundamental disagreements between India and Pakistan over the preconditions, particularly the sequence and extent of troop withdrawals and the modes of the plebiscite. India insisted on Pakistan's complete withdrawal first, while Pakistan argued for simultaneous withdrawals and an UN-supervised administration during the plebiscite. 

2.6 Simla Agreement (1972) and Lahore Declaration (1999) 

Following the 1971 war, India and Pakistan signed the Simla Agreement in 1972. This landmark agreement converted the ceasefire line into the Line of Control (LoC) and committed both countries to resolve their differences "by peaceful means through bilateral negotiations" and to refrain from unilateral alteration of the LoC. India frequently cites the Simla Agreement to argue that Kashmir is a bilateral issue, thus resisting any third-party mediation or internationalization. Pakistan, while acknowledging the Simla Agreement, maintains that it does not supersede the UN resolutions calling for a plebiscite and that the bilateral framework has failed to yield results. 

The Lahore Declaration of 1999, signed by Prime Ministers Nawaz Sharif and Atal Bihari Vajpayee, further reaffirmed the commitment to bilateral dialogue and confidence-building measures, including Kashmir. However, the Kargil War erupted shortly after, demonstrating the fragility of such agreements in the face of deep-seated mistrust and the powerful influence of non-state actors. 

3. Political Implications 

The Kashmir issue is not merely a territorial dispute but a deeply entrenched political and ideological struggle that shapes the national identity, domestic politics, and foreign policy orientations of both India and Pakistan. 

3.1 Competing National Narratives and Ideologies 

The Kashmir dispute is inextricably linked to the founding ideologies of both states: 

  • India's Secularism and Territorial Integrity: For India, Kashmir is a fundamental pillar of its secular identity, demonstrating that a Muslim-majority state can thrive within a diverse, democratic, and secular India. The accession of J&K is seen as a validation of India's inclusive, multi-religious nationhood. Any concession on Kashmir is perceived as a direct challenge to the foundational principles of the Indian state, potentially encouraging secessionist movements in other diverse regions. The narrative emphasizes Kashmir's accession as legally sound and its integration as irreversible, often citing the popular mandate of elections held in J&K. Hence, considering Kashmir as its integral part.
  • Pakistan's Two-Nation Theory and Unfinished Agenda: For Pakistan, Kashmir is the "jugular vein" and the "unfinished agenda of partition." The Two-Nation Theory, which theorizes that Hindus and Muslims are two separate nations, implies that Muslim-majority Kashmir should naturally be part of Pakistan. The struggle for self-determination in Kashmir is portrayed as a moral, political, and religious obligation, central to Pakistan's identity and its very raison d'être or rationale. Pakistan views Indian rule in Kashmir as an occupation and a denial of the Kashmiri people's fundamental right to self-determination, as enshrined in UN resolutions. 

These diametrically opposed national narratives fuel a perpetual political deadlock, making compromise extremely difficult for any government in either country, as it would be perceived as a betrayal of core national ideals. 

3.2 Domestic Politics and Electoral Impact 

Kashmir holds immense emotional and political resonance in both India and Pakistan, heavily influencing domestic politics, electoral outcomes, and the stability of governments. 

  • In India: Political parties, especially those with a strong nationalist and Hindu majoritarian agenda like the Bharatiya Janata Party (BJP), often adopt a hardline stance on Kashmir to consolidate their vote banks. Asserting India's sovereignty over the entire region, integrating J&K more fully, and taking decisive action, like the abrogation of Article 370, is seen as a display of strength and national resolve, appealing to a significant portion of the electorate. Any perceived softness on Kashmir can be politically damaging and exploited by the opposition. The issue is often used to rally nationalistic fervor and divert attention from other domestic challenges.
  • In Pakistan: Kashmir is a highly emotive issue that can mobilize public opinion and exert significant pressure on political leadership. Successive governments, regardless of their political stripe, and the powerful military establishment have consistently championed the Kashmiri cause, making it difficult for any leader to deviate from the traditional stance of supporting the right to self-determination. The issue is frequently used to rally national unity, particularly during periods of internal instability or economic hardship. The "Kashmir Committee" in Pakistan's Parliament is a testament to the institutionalized focus on the issue. 

3.3 The Abrogation of Article 370 (2019) as a Paradigm Shift  

On August 5, 2019, the Indian government unilaterally abrogated Article 370 of its constitution, which had granted special autonomous status to Jammu and Kashmir, and simultaneously revoked Article 35A, which defined permanent residents and their special rights. The state was subsequently bifurcated into two Union Territories: Jammu and Kashmir having a legislature while Ladakh without a legislature. This move represented a significant constitutional and political restructuring of the region. 

  • Indian Rationale and Justification: India presented the abrogation as a necessary step to fully integrate J&K with the rest of the country, arguing that Article 370 was a temporary provision that had fostered separatism and terrorism, hindered economic development and investment, and prevented central laws from being fully applicable, thus denying rights to certain communities. For instance, Scheduled Castes, West Pakistan Refugees. This has created a sense of isolation for Kashmiris. The move was framed as bringing development, security, and true democracy to the region, aligning it with the national mainstream.
  • Pakistani Condemnation and Reaction: Pakistan reacted with strong condemnation, terming the move illegal, unilateral, and a blatant violation of international law, UN Security Council resolutions, and the Simla Agreement. Pakistan argued that the abrogation was an attempt at demographic engineering to alter the Muslim-majority character of the region and suppress the Kashmiri right to self-determination. In response, Pakistan downgraded diplomatic ties, suspended bilateral trade, and launched a vigorous diplomatic campaign to internationalize the issue at the UN, OIC, and other forums, though with limited tangible success in reversing India's decision.
  • Impact on Kashmiris: The abrogation was accompanied by an unprecedented security lockdown, communication blackout, including internet and mobile services and the detention of thousands mainstream political leaders, activists, and ordinary citizens, in Indian-administered Kashmir. While India asserts that the situation has normalized and development is progressing, critics point to continued restrictions on civil liberties, economic disruption, psychological trauma, and a pervasive sense of disempowerment among Kashmiris. The move has further alienated a segment of the Kashmiri population and fueled resentment.
  • International Reaction: The international community's reaction was largely muted. While some countries expressed concern over human rights and urged India and Pakistan to resolve their differences bilaterally through dialogue, there was no significant international intervention or widespread condemnation of India's internal constitutional change. Most nations viewed it as India's internal matter although one with regional implications. This lack of robust international response was a diplomatic setback for Pakistan.
  • Long-Term Implications for Bilateral Relations: The abrogation of Article 370 has significantly altered the political landscape, deepening the divide between India and Pakistan. India now considers the matter entirely internal and non-negotiable, making any future dialogue on Kashmir even more complex, as Pakistan insists on the pre-August 2019 status as a prerequisite for meaningful talks. It has solidified India's control and made a return to the previous status quo highly improbable. 

3.4 Persistent Trust Deficit and Dialogue Deadlocks 

The Kashmir issue is the primary reason for the persistent and profound trust deficit between India and Pakistan, which has consistently hampered any meaningful and sustained bilateral dialogue. 

  • Preconditions for Talks: India often demands an end to "cross-border terrorism" as a precondition for any meaningful dialogue, accusing Pakistan of supporting militant groups. Pakistan, conversely, insists that Kashmir is the "core issue" and must be central to any negotiations. This fundamental disagreement on preconditions frequently derails peace efforts before they even begin.
  • History of Failed Peace Processes: Major peace initiatives, such as the Composite Dialogue Process (2004-2008) and the Agra Summit (2001), ultimately failed to achieve a breakthrough, largely due to the inability to find common ground on Kashmir. The issue often becomes a victim of "spoilers”, non-state actors or hardline elements, whose actions can quickly escalate tensions and halt diplomatic engagement. The 1987 state elections in J&K, widely perceived as rigged, also contributed significantly to the disillusionment and rise of militancy, further eroding trust. 

4. Security and Military Implications in South Asia 

The Kashmir dispute has transformed the region into one of the most militarized zones globally, serving as a constant flashpoint for conventional and, more alarmingly, nuclear conflict between the two adversaries. 

4.1 Wars and Proxy Conflicts 

Kashmir has been the direct cause or a significant factor in all major conflicts between India and Pakistan: 

  • 1947-48 War: Directly triggered by Kashmir's accession and the tribal invasion. It resulted in the division of the state along the ceasefire line.
  • 1965 War: Pakistan's "Operation Gibraltar" aimed to instigate an uprising in Indian-administered Kashmir, leading to a full-scale war that spread beyond Kashmir to other sectors of the international border.
  • 1971 War: While primarily triggered by the Bangladesh crisis, the Kashmir front remained active, and fighting occurred along the LoC.
  • Kargil War (1999): Pakistani infiltration across the LoC in the Kargil sector led to intense fighting, bringing both countries to the brink of a larger conflict just after they had become overt nuclear powers. This conflict highlighted the dangers of conventional escalation under a nuclear umbrella.
  • Ongoing Skirmishes and Ceasefire Violations: The Line of Control (LoC) remains one of the most volatile de facto borders in the world, with frequent ceasefire violations, artillery exchanges, and cross-border raids. These incidents lead to casualties on both sides, disrupt civilian life, and maintain a constant state of military alert. 

4.2 Militarization and Exorbitant Defense Spending 

The unresolved dispute necessitates massive military deployments by both India and Pakistan along the LoC and in their respective parts of Kashmir. This leads to: 

  • Enormous Defense Budgets: Both nations divert significant portions of their national budgets to defense spending, acquiring sophisticated weaponry and maintaining large standing armies. This comes at the cost of crucial social sector development like education, health, poverty alleviation, perpetuating under-development, and impacting the human security of their populations.
  • Human Cost of Militarization: The heavy military presence profoundly impacts the lives of ordinary citizens living along the LoC and within Kashmir. This includes displacement, psychological trauma, restrictions on movement, surveillance, and disruption of economic activity. The Siachen Glacier conflict, often dubbed the "highest battlefield in the world," symbolizes the absurd and costly militarization driven by the Kashmir dispute, where both sides incur immense financial and human costs based on extreme weather conditions for a strategically marginal territory. 

4.3 The Nuclear Dimension as an Escalation Ladder 

The overt nuclearizing of India and Pakistan in 1998 added a perilous dimension to the Kashmir conflict, transforming it into a potential nuclear flashpoint. 

  • Nuclear Deterrence: Both countries maintain a "minimum credible deterrence" doctrine, implying that they possess sufficient nuclear capabilities to inflict unacceptable damage on the adversary, thereby deterring a first strike. However, the ambiguity surrounding "red lines," the lack of robust communication channels during crises, and the potential for miscalculation remain grave concerns.
  • Escalation Risks: Incidents like the Pulwama attack and India's subsequent Balakot airstrikes, followed by aerial dogfights, starkly demonstrated the dangerous escalatory ladder. The rapid escalation from a terrorist attack to aerial combat between nuclear powers highlighted the fragility of peace and the ever-present danger that the Kashmir dispute poses to regional and global security. The "Cold Start" doctrine further adds to the complexity and risk of rapid escalation.
  • Global Concern: The prospect of a nuclear conflict between India and Pakistan over Kashmir is a major concern for the international community, leading to urgent calls for de-escalation and dialogue whenever tensions rise. 

4.4 Cross-Border Terrorism and Insurgency 

This is perhaps the most contentious security aspect of the Kashmir dispute and a primary barrier to peace. 

  • Historical Context of Insurgency: The late 1980s saw the eruption of an armed insurgency in Indian-administered Kashmir, fueled by perceived political disenfranchisement, rigged elections of1987, and a sense of alienation. This insurgency initially comprised groups seeking independence or accession to Pakistan.
  • India's Allegations: India consistently accuses Pakistan of sponsoring, training, and arming militant groups. For instance, Lashkar-e-Taiba, Jaish-e-Mohammed, Hizbul Mujahideen are some groups aimed to carry out attacks in Indian-administered Kashmir and other parts of India. It views this as "cross-border terrorism" and a deliberate strategy of "proxy warfare" to destabilize the region and compel India to negotiate on Kashmir.
  • Pakistan's Denial and Counter-Narrative: Pakistan denies state involvement in supporting terrorism, asserting that the armed struggle in Kashmir is an indigenous freedom movement driven by local grievances against Indian rule. It claims to provide only moral, political, and diplomatic support to the Kashmiri people's right to self-determination. Pakistan often highlights human rights abuses by Indian security forces as the root cause of the insurgency.
  • Impact: Regardless of the truth, the issue of cross-border violence fuels deep mistrust, provides justification for military actions, and serves as a constant barrier to any peace process. It allows both sides to avoid addressing the core political dispute, instead focusing on security narratives. Pakistan's struggle with the Financial Action Task Force (FATF) on terror financing has also been linked to its perceived inaction against certain militant groups. 

4.5 Water Security and the Indus Waters Treaty 

The Indus Waters Treaty (IWT) of 1960, brokered by the World Bank, governs the sharing of the Indus River System's waters. The three Western Rivers, including Indus, Jhelum, and Chenab are allocated to Pakistan while the three Eastern Rivers, including Ravi, Beas, and Sutlej are allocated to India. Crucially, the headwaters of the Western Rivers originate in Kashmir before flowing into Pakistan, making Kashmir intrinsically linked to Pakistan's water and food security. 

  • Treaty's Resilience: Despite multiple wars and conflicts, the IWT has largely survived, often cited as a success story of conflict resolution and a testament to the importance of shared resources. 
  • Recent Threats and Concerns: However, in recent years, particularly after major terror attacks like Uri and Pulwama some voices in India have threatened to abrogate or reinterpret the treaty, impacting Pakistan's water supply. While such threats have not materialized into concrete action, they highlight how Kashmir can potentially destabilize even established agreements vital for regional stability and Pakistan's agrarian economy. The potential for "water wars" remains a distant but real concern, adding another layer of existential security concern directly linked to Kashmir. 

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5. Diplomatic and International Implications 

The Kashmir issue is not confined to the bilateral realm; it significantly influences the diplomatic engagements of India and Pakistan on the global stage and shapes their relationships with major powers and multilateral organizations. 

5.1 Internationalization vs. Bilateralism   

  • Pakistan's Strategy of Internationalization: Pakistan consistently seeks to internationalize the Kashmir dispute, raising it at various international forums, including the UN General Assembly, UN Security Council, Organization of Islamic Cooperation (OIC), and human rights bodies. It calls for the implementation of UN resolutions and international mediation to resolve the conflict. This strategy aims to exert international pressure on India, draw global attention to the plight of Kashmiris, and counter India's narrative of Kashmir being an "internal matter."
  • India's Stance on Bilateralism: India vehemently opposes any third-party intervention, maintaining that Kashmir is a bilateral issue to be resolved exclusively between India and Pakistan under the framework of the Simla Agreement (1972) and the Lahore Declaration (1999). It views any attempt at internationalization as an infringement on its sovereignty and an unwarranted interference in its internal affairs. India's diplomatic efforts are geared towards preventing the issue from gaining traction on international agendas. 

This fundamental disagreement on the diplomatic approach to Kashmir leads to a constant tug-of-war in international diplomacy, often resulting in diplomatic stalemates and preventing broader cooperation on other global issues. 

5.2 Impact on Multilateral Forums 

  • SAARC's Paralysis: The South Asian Association for Regional Cooperation (SAARC), designed to foster regional cooperation and economic integration, has largely been rendered ineffective due to the deep-seated mistrust and rivalry between India and Pakistan, primarily fueled by Kashmir. Summit meetings are often stalled or cancelled. For example, the 2016 SAARC Summit in Islamabad and ambitious regional projects remain unrealized, hindering collective progress in South Asia.
  • UN and OIC: Pakistan consistently raises Kashmir at the UN, particularly in the Human Rights Council, highlighting alleged human rights violations by Indian security forces in Indian-administered Kashmir. The OIC, a bloc of Muslim-majority nations, has generally supported Pakistan's stance on Kashmir, passing resolutions that express solidarity with the Kashmiri people and call for a resolution in accordance with UN resolutions.
  • Other Forums: While both countries are members of organizations like the Shanghai Cooperation Organization (SCO) and participate in BRICS (India) and various other international bodies, the underlying tensions over Kashmir limit the potential for deeper strategic cooperation or joint initiatives within such blocs. 

5.3 Role of Major Global Powers 

The Kashmir dispute has historically drawn the attention of major global powers, whose stances have evolved over time, reflecting their broader strategic interests in the region. 

  • United States: Historically, the US has urged India and Pakistan to resolve the issue bilaterally. While it has occasionally offered mediation, especially during periods of heightened tension during the Kargil War, it generally avoids taking a definitive stance on the dispute's merits, balancing its strategic interests with both countries. Post-9/11, the US focus shifted towards counterterrorism, often urging Pakistan to crack down on militant groups operating from its soil, which India links to Kashmir. The US views stability in South Asia as crucial for its broader Indo-Pacific strategy.
  • China: China has its own territorial claims in Aksai Chin, part of the larger Kashmir region, and maintains close strategic ties with Pakistan. Its stance on Kashmir is generally supportive of Pakistan's position on self-determination, though it also calls for bilateral resolution. The China-Pakistan Economic Corridor (CPEC), a flagship project of China's Belt and Road Initiative, passes through Gilgit-Baltistan, a region claimed by India, adding another layer of geopolitical complexity and a point of contention with India.
  • Russia: Russia has historically maintained a close strategic partnership with India and generally supports India's position on Kashmir as a bilateral issue, often blocking attempts to internationalize it at the UN Security Council. While Russia has recently diversified its relations with Pakistan, its core stance on Kashmir remains largely unchanged.
  • European Union: The EU generally calls for a peaceful, bilateral resolution and expresses concern over human rights issues in the region, urging restraint from both sides. 

5.4 Human Rights Diplomacy 

Both India and Pakistan actively engage in human rights diplomacy concerning Kashmir, using international platforms to highlight alleged abuses by the other side. 

  • Pakistan's Focus: Pakistan consistently highlights alleged human rights violations by Indian security forces in Indian-administered Kashmir, including extrajudicial killings, arbitrary detentions, use of pellet guns, and restrictions on freedom of speech and assembly. It uses these allegations to build international pressure on India and garner sympathy for the Kashmiri cause.
  • India's Counter-Narrative: India counters by accusing Pakistan of supporting cross-border terrorism, which it argues is the root cause of instability and human rights issues in the region. It also points to alleged human rights concerns and lack of democratic freedoms in Pakistan-administered Kashmir and Gilgit-Baltistan, as well as the exodus of Kashmiri Pandits from the Valley. This diplomatic battle over human rights further exacerbates tensions and makes it difficult for international bodies to play a constructive role without being accused of bias by either party. 

6. Economic Implications and Missed Opportunities 

While often overshadowed by political and security concerns, the Kashmir issue imposes significant and often understated economic costs on both India and Pakistan, hindering regional prosperity and development. 

6.1 Lost Economic Potential and Trade Barriers 

  • Abysmal Bilateral Trade: Despite being neighbors with shared borders, cultural ties, and historical trade routes, bilateral trade between India and Pakistan remains woefully low, often plummeting during periods of heightened tension. The unresolved Kashmir dispute and the resulting political animosity prevent the realization of immense economic potential through cross-border trade, investment, and joint ventures. Formal trade channels are often restricted or suspended, forcing reliance on indirect or informal routes, which are less efficient and more costly.
  • Missed Regional Integration: The conflict has severely hampered the economic integration of South Asia. Organizations like SAARC, which could foster a vibrant regional common market, have failed to achieve their full potential due to the lack of trust and cooperation between the two largest economies in the region. This prevents the creation of a powerful economic bloc that could uplift millions out of poverty and compete effectively on the global stage.
  • Impact on Connectivity: The dispute restricts land-based trade routes and connectivity between South Asia and Central Asia, forcing both countries to rely on more expensive sea or air routes for trade with other regional partners, thereby increasing transaction costs and reducing competitiveness. The potential for energy corridors, transit trade, and infrastructure development across the region remains largely untapped. 

6.2 Burden of Exorbitant Defense Spending 

The continuous militarization of the LoC and the arms race driven by the Kashmir conflict diverts substantial portions of national budgets towards defense, at the expense of crucial social and economic development sectors. 

  • Resource Diversion: Billions of dollars are annually diverted from critical sectors like education, healthcare, poverty alleviation, infrastructure development, and climate change adaptation. This perpetuates underdevelopment, exacerbates socio-economic challenges, and limits human capital development in both countries. For Pakistan, with its persistent economic challenges, this burden is particularly acute.
  • Opportunity Cost: The opportunity cost of this military spending is enormous. Resources that could be invested in improving living standards, building resilient infrastructure, fostering innovation, or addressing pressing environmental concerns are instead consumed by maintaining a large military presence and acquiring advanced weaponry. 

6.3 Devastation of Kashmir's Economy 

The conflict has had a particularly devastating and long-term impact on the economy of Jammu and Kashmir itself, affecting the livelihoods of millions. 

  • Crippled Tourism Industry: Kashmir, once renowned as a major tourist destination "Paradise on Earth", has seen its tourism industry severely crippled by decades of conflict, curfews, shutdowns, and security concerns. This has led to massive job losses, a decline in revenue, and a significant blow to the local economy.
  • Horticulture and Handicrafts: Key economic sectors like horticulture and traditional handicrafts have suffered immensely due to disruptions in transportation, market access, and a general climate of instability. Farmers and artisans struggle to sell their produce and products, impacting their income.
  • Unemployment and Poverty: The lack of economic opportunities, coupled with the psychological toll of conflict, has led to high rates of unemployment, particularly among youth, and exacerbated poverty in the region, contributing to a cycle of discontent.
  • Infrastructure Damage: Frequent clashes, shelling across the LoC, and natural disasters damage vital infrastructure, further impeding economic recovery and development. 

6.4 Deterrent to Foreign Investment 

The perennial political instability, the risk of armed conflict, and the unpredictable nature of India-Pakistan relations deter foreign direct investment (FDI) in both countries, particularly in border regions and sectors perceived as high-risk. Investors are wary of geopolitical risks, which can lead to sudden disruptions in business operations, supply chains, and overall market stability. This limits economic growth and job creation. 

6.5 CPEC and Geopolitical-Economic Intersections 

The China-Pakistan Economic Corridor (CPEC), a flagship project of China's Belt and Road Initiative, passes through Gilgit-Baltistan, a region administered by Pakistan but claimed by India as part of the erstwhile princely state of J&K. 

  • Indian Objections: India has strongly objected to CPEC, viewing it as a violation of its sovereignty over the disputed territory, as it runs through what India considers its own land. This adds another layer of geopolitical-economic tension directly linked to the Kashmir issue.
  • Strategic Implications: While CPEC is primarily an economic project for Pakistan, aimed at improving infrastructure and connectivity, it has significant strategic implications, enhancing Pakistan's connectivity and economic leverage, which India views with suspicion given the Kashmir backdrop and its own rivalry with China. 

7. Challenges to Resolution 

Despite the immense human, political, security, and economic costs, the Kashmir dispute remains unresolved due to a confluence of complex and deeply entrenched factors. 

7.1 Deep-Seated Trust Deficit and Historical Baggage 

Decades of conflict, mutual accusations, and broken promises have created an almost insurmountable trust deficit between the two nations. Each side views the other's actions with suspicion, interpreting even conciliatory gestures through a lens of historical animosity. This makes genuine dialogue and compromise exceedingly difficult, as any concession is seen as a sign of weakness or a precursor to further demands. 

7.2 Maximalist and Inflexible Positions 

Both India and Pakistan maintain maximalist and largely inflexible positions on Kashmir, leaving little room for compromise: 

  • India's Stance: India insists that J&K is an "integral and inalienable part" of India, and the only outstanding issue is the territory of Azad Kashmir and Gilgit-Baltistan, which it considers illegally occupied by Pakistan. Post-Article 370 abrogation, India views the matter as entirely internal and non-negotiable.
  • Pakistan's Stance: Pakistan insists on the right to self-determination for the Kashmiri people through a plebiscite, as enshrined in UN resolutions. It views Indian rule in Kashmir as an occupation and demands a resolution based on the wishes of the Kashmiri people. Neither side is willing to concede, fearing domestic backlash, a perceived loss of national honor, and setting up a precedent that could undermine their respective national ideologies. 

7.3 Domestic Political Constraints and Public Opinion 

Political leaders in both countries operate under significant domestic constraints. Any perceived "softness" or willingness to compromise on Kashmir can be exploited by opposition parties, hardline elements, and nationalist groups, potentially leading to political instability, electoral defeat, or even accusations of treason. Public opinion, often shaped by nationalist media narratives, also plays a crucial role in hardening positions and limiting the political space for diplomatic flexibility. 

7.4 Role of Non-State Actors and "Spoilers" 

The presence and activities of militant groups, particularly those operating across the LoC, significantly complicate any peace of effort. Their actions, such as terror attacks or border skirmishes, can quickly escalate tensions, provide justification for military responses, and derail diplomatic initiatives. These non-state actors often act as "spoilers," benefiting from continued conflict and having a vested interest in preventing peace. India blames Pakistan for supporting these groups, while Pakistan claims they are indigenous, creating a vicious cycle of violence and accusation. 

7.5 Lack of Sustained and Meaningful Dialogue 

The dialogue process between India and Pakistan has been characterized by frequent interruptions, a lack of continuity, and a tendency to revert to hostile rhetoric. Each crisis or terror attack often leads to a suspension of talks, preventing the build-up of momentum and trust necessary for a breakthrough. There is a lack of institutionalized mechanisms for sustained engagement, making the process vulnerable to external shocks. 

7.6 Evolving Geopolitical Landscape and External Influences 

The changing geopolitical landscape, including the rise of new global powers, shifts in alliances, and the increasing focus on economic corridors, adds new layers of complexity to the Kashmir dispute. Major powers often prioritize their own strategic interests, which can sometimes inadvertently perpetuate the stalemate by not exerting sufficient pressure for a resolution. The issue can also become a pawn in larger strategic games, further complicating its resolution. 

7.7 Internal Divisions within Kashmir 

The Kashmiri population itself is not monolithic; there are diverse aspirations, including accession to India, accession to Pakistan, or complete independence. These internal divisions, often exacerbated by the conflict, make it challenging to ascertain a unified "will of the people" or to arrive at a solution that satisfies all stakeholders. 

8. Pathways to Resolution and Recommendations  

While the Kashmir issue presents formidable challenges, a stable, prosperous, and secure future for South Asia necessitates a pragmatic, multi-pronged, and sustained effort towards its resolution. 

8.1 Sustained and Uninterrupted Dialogue 

  • Comprehensive and Result-Oriented Dialogue: Re-initiate and maintain a comprehensive, uninterrupted dialogue process that addresses all outstanding issues, including Kashmir, in a structured and result-oriented manner. This means moving beyond mere talks to negotiations aimed at tangible outcomes.
  • Back-Channel Diplomacy: Utilize robust back-channel diplomacy to explore creative solutions away from public scrutiny, allowing for greater flexibility, risk-taking, and the testing of ideas without immediate political fallout.
  • Focus on Problem-Solving: Shift the focus from blame-game and historical grievances to joint problem-solving, acknowledging the legitimate concerns and aspirations of all stakeholders, including the Kashmiri people. Acknowledge the complexity and avoid simplistic solutions. 

8.2 Robust Confidence Building Measures (CBMs) 

  • Strengthening Existing CBMs: Fully implement and expand existing CBMs, such as cross-LoC trade and bus services, making them more reliable and impactful.
  • New CBMs: Explore new CBMs across various sectors, including:
  • Cultural and Educational Exchanges: Facilitate academic, artistic, and youth exchanges to build bridges at the grassroots level and foster mutual understanding.
  • Sports Diplomacy: Promote sporting events between the two nations to reduce tensions and create a positive environment.
  • Joint Disaster Relief Efforts: Cooperate on non-traditional security threats like climate change, pandemics, and natural disasters, demonstrating shared vulnerabilities and the benefits of collaboration.
  • Military-to-Military Contact: Re-establish regular military-to-military contacts, hotlines, and flag meetings to de-escalate tensions along the LoC, improve communication during crises, and prevent accidental escalation.
  • Media Engagement: Encourage responsible media reporting in both countries to reduce sensationalism and promote a more balanced narrative. 

8.3 Prioritizing Humanitarian Aspects and People-to-People Contact 

  • Human Rights and Governance: Both countries must prioritize human rights in their respective administrations of Kashmir, ensuring accountability for abuses, addressing grievances, and promoting good governance, transparency, and democratic rights.
  • Easing Restrictions: India should consider easing restrictions on movement, communication, and political activity in Indian-administered Kashmir, fostering a sense of normalcy, reconciliation, and allowing for greater economic activity.
  • Facilitating Cross-LoC Travel: Make it easier for Kashmiris on both sides of the LoC to meet, fostering familial, cultural, and economic ties that can build bridges and create a constituency for peace. This could include allowing more flexible travel permits and expanding crossing points.
  • Addressing Trauma: Provide psychological support and rehabilitation for individuals and communities affected by decades of conflict. 

8.4 Economic Cooperation as a Bridge to Peace 

  • Resumption of Full-Fledged Trade: Re-establish and expand full-fledged bilateral trade, recognizing the immense economic benefits for both countries. Economic interdependence can create powerful vested interests in peace and stability.
  • Joint Economic Projects: Explore joint economic projects in non-contentious areas, such as energy, infrastructure, and tourism development, building trust and demonstrating the tangible benefits of cooperation.
  • Regional Economic Integration: Work towards strengthening SAARC and other regional economic blocs, leveraging South Asia's collective economic potential. This could involve creating special economic zones along the LoC or promoting cross-border investment.
  • Water Resource Management: Develop joint mechanisms for managing shared water resources under the Indus Waters Treaty, ensuring its continued integrity and exploring cooperative projects for flood control and water conservation. 

8.5 Role of the International Community  

  • Facilitation, Not Imposition: The international community can play a constructive role not as a mediator but as a facilitator, encouraging dialogue, offering technical expertise, and providing a neutral platform for discussions.
  • Pressure on Non-State Actors: Consistent and effective international pressure on all non-state actors involved in violence and extremism is crucial to creating an environment conducive to peace. This includes addressing terror financing and infrastructure.
  • Development Assistance: Support development initiatives in the region, particularly in Kashmir, to address socio-economic grievances that can fuel discontent and provide alternative livelihoods.
  • Human Rights Monitoring: Continue to monitor the human rights situation in Kashmir and advocate for adherence to international human rights standards from both sides. 

8.6 Exploring Innovative Solutions and Moving Beyond the Zero-Sum Game 

Ultimately, a breakthrough on Kashmir requires a fundamental shift in mindset from a zero-sum game to one where both sides recognize that a stable and prosperous South Asia benefits everyone. This may involve exploring innovative solutions that go beyond traditional territorial claims, such as: 

  • Joint Management Mechanisms: Exploring models of joint management or shared sovereignty over certain aspects of the disputed territory.
  • Demilitarization: Phased demilitarization of the LoC and other areas, under international supervision, to reduce tensions and improve civilian life.
  • Soft Borders and Free Movement: Creating "soft borders" along the LoC, allowing for free movement of people, goods, and ideas, without prejudice to either side's claims.
  • Special Economic Zones: Establishing special economic zones along the LoC that foster cross-border trade and investment, creating economic interdependence.
  • Autonomy within Existing Frameworks: For India, exploring enhanced autonomy and self-governance for J&K within the Indian constitutional framework, addressing local aspirations. 
  • Dialogue with Kashmiri Stakeholders: Engaging all legitimate Kashmiri stakeholders in the dialogue process to ensure that any proposed solution reflects their diverse aspirations and concerns.

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9. Conclusion 

The Kashmir issue is not merely a territorial dispute; it is the central nervous system of India-Pakistan relations, a deeply emotive, historically entrenched, and politically charged conflict that has led to multiple wars, stunted economic growth, and perpetuated a climate of profound distrust and hostility. Its multifaceted implications extend across the political, security, diplomatic, and economic spheres, making it the undeniable cornerstone upon which the entire bilateral relationship depends. For students, it is important to understand that the Kashmir issue is not merely about memorizing facts but about grasping the intricate interplay of historical grievances, competing national narratives, domestic political imperatives, and regional security dynamics. The abrogation of Article 370 in 2019 has added a new, complex layer to this already intractable problem, further entrenching positions and making a direct resolution seem even more distant. The constant threat of escalation, particularly given the nuclear capabilities of both nations, underscores the global significance of this regional dispute. However, the immense human and economic costs of the prolonged conflict, coupled with the shared challenges of climate change, poverty, and regional instability, underscore the urgent need for a peaceful resolution. While the path ahead is fraught with challenges and requires overcoming decades of animosity, a sustained commitment to comprehensive dialogue, the implementation of robust confidence-building measures, a genuine focus on the welfare and aspirations of the Kashmiri people, and a willingness to explore innovative, non-traditional solutions are imperative. The future of South Asia, its stability, prosperity, and indeed, its very peace, hinges on India and Pakistan's ability to move beyond their historical animosities and find a pragmatic, mutually acceptable way forward on Kashmir. The alternative is a continued cycle of tension, conflict, and missed opportunities; a burden too heavy for the region to bear indefinitely. The time for statesmanship and courageous diplomacy is now, for the sake of millions whose lives remain intertwined with this unresolved legacy. 

Possible CSS/PMS Examination Questions 

Here are some potential questions based on the article's content, designed to test one’s comprehensive understanding of the Kashmir issue and its impact on India-Pakistan relations: 

  1. The Kashmir issue is the basis on which India-Pakistan relations depend in various aspects. Elaborate this statement by analyzing the political, security, diplomatic, and economic implications of the Kashmir dispute.
  2. Critically analyze the historical genesis of the Kashmir dispute, highlighting the conflicting narratives of India and Pakistan regarding the Instrument of Accession and UN resolutions.
  3. Discuss the security implications of the Kashmir conflict, particularly in the context of nuclear deterrence and cross-border terrorism. How has the militarization of the Line of Control (LoC) impacted regional stability?
  4. Examine the diplomatic strategies employed by India and Pakistan regarding Kashmir (bilateralism vs. internationalization). How has the international community responded to these approaches?
  5. What are the economic costs of the Kashmir dispute for India, Pakistan, and the people of Kashmir? How does it hinder regional economic integration?
  6. The abrogation of Article 370 in 2019 by India is considered a "paradigm shift" in the Kashmir dispute. Discuss its rationale, implications for India-Pakistan relations, and its impact on the ground in Indian-administered Kashmir.
  7. Identify and critically evaluate the major challenges to resolving the Kashmir issue between India and Pakistan.
  8. Propose concrete and pragmatic pathways or recommendations for fostering a more stable and cooperative future between India and Pakistan, with specific reference to addressing the Kashmir dispute.
  9. "Water security is intrinsically linked to the Kashmir issue for Pakistan." Discuss the significance of the Indus Waters Treaty (IWT) and how the Kashmir dispute poses potential threats to Pakistan's water security.
  10. Analyze the role of non-state actors and "spoilers" in perpetuating the Kashmir conflict and derailing peace processes between India and Pakistan. 

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3 December 2025

Written By

Komal Batool

BS IR

Student | Author

Edited & Proofread by

Sir Ammar Hashmi

Current Affairs Coach & CSS Qualifier

Reviewed by

Sir Ammar Hashmi

Current Affairs Coach & CSS Qualifier

The following are the references used in the article “The Kashmir Issue is the basis on which India-Pakistan Relations depend in various aspects. Discuss.” 

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1st Update: December 3, 2025

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