Viper0011.
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The biggest risk is the impact on Indian economy in the short term. Stock market will tank and FDI will be frozen but this will be short term coz of India's overwhelming superiority in conventional warfare. Its just so so unfortunate.
So.....what do you think will be the outcome? Pakistan will cede to the "over whelming superiority"? The sad result at that point would be, unfortunately if shiit hits the fan, the markets in both the countries will crash (if they still manage to exist). The end result of a full scale war is a doom's day scenario no one wants to think about. Which is why I've been hoping and praying for the innocent people who live on both sides as they suffer the most in these situations. A war isn't an answer to anything in this case, period.
Modi was advised against any war by his own generals. If he overwrites them, that would be the stupidest thing he could ever do. The best option, is nothing at all. The next best option if he wants to show muscles, is to engage Pakistan (and vis-a-vis) with heavy artillery and not touching the border, let alone crossing it. And after a few days, do a seize fire and let the media make a hoopla out of it. But putting foot on the borders would be something that he has already been advised against. Let's see what happens. I hope the cooler heads will prevail and realize that there are innocent and poor people on either side in hundreds of millions who'll end up suffering!!