The Bloomberg article continues:
Modi himself has suffered new damage to a reputation that he had diligently washed free of the taint of suspected complicity in a 2002 anti-Muslim pogrom. Ascending to power in 2014, he managed to persuade many in the West that he was focused on making India's economy grow and creating jobs rather than stoking Hindu majoritarianism. Modi’s image as an economic modernizer suffered greatly from his decision to withdraw most currency notes from circulation in 2016. Post-Kashmir, it has become even harder to maintain.
Amid
bleak news about the economy, overseas investors were pulling funds out of India before Modi launched his crackdown in Kashmir. The bigotry on display in India's public sphere might lead more of them to wonder if they should still take for granted the country's social cohesion, and the political and economic rationality of its leaders.
In the West, India long ago lost the prestige it had enjoyed through its association with world-historical figures such as Mahatma Gandhi, and its moral leadership of the non-western world in the decades following independence in 1947. The more recent narrative about India -- that it is a distinguished multicultural democracy and economic powerhouse -- is now also up for debate. This squandering of soft power cannot but have deep consequences for an aspiring global force that is very far from matching China’s hard power.
In many ways, the repression of Kashmiris is a more egregious act of self-harm than demonetization. The longer it goes on, the greater the suspicion will grow that, having failed in his central tasks, India’s pied-piper is running blind, in danger of leading his nation to a dead-end.