Pakistan's role as a Middle East peacemaker is seen as a strategic setback for India, which has aimed to isolate Pakistan globally.
Peace in the Middle East would benefit India economically due to its involvement in regional projects like the India-Middle East-Europe Economic Corridor (IMEC) and I2U2.
India did not actively mediate in the conflict due to cautious diplomacy, lack of formal invitation, and strained relations with key belligerents like Iran and the US.
Pakistan's enhanced reputation as a middle power could increase its sway with the US, potentially complicating US-India relations and affecting the pending trade deal.
India's position as a leader of the Global South is challenged by its close ties with Israel, which faces criticism in the Global South for its actions in Gaza.
Despite the setback, India remains a key player in the Middle East with strong ties to GCC states, significant energy interests, and a large expatriate community.
The US-India relationship has been shaky, and Pakistan's facilitation role, endorsed by the US, may hinder efforts to mend ties and advance trade agreements.
Pakistan may leverage its new status to improve relations with other South Asian countries like Bangladesh and Sri Lanka, and deepen influence in the Middle East.
Prime Minister Modi's domestic image is unlikely to be severely impacted, as supporters advocate for staying out of complex mediation processes.
The outcome hinges on whether Pakistan can secure a permanent peace; failure would be a setback for Pakistan's newfound global standing.