There are three basic issues here. Let's discuss them one by one -
1) People within our country can very easily be motivated to jeopardise our national interest. So how this works ?
Propaganda powered by corruption(mind it, without corrupt people, it is not possible for another country to get a foothold) handled by none other than Pakistan. The problem starts here, and leads to internal destabilisation.
2) For India to take a decisive call against Pakistan, we need two things - Political will, and citizens of India must acknowledge the need for the strike unanimously. So why is political will not sufficient alone ? The reason is simple, politics. A war (even a small scale) will lead to rise in prices of stuff and affect the life of common people ( keeping aside the casualties both military & civilians), which will in turn affect the vote bank.
3) International support, the moment India takes action, US will ask India to stand down (like what happened after Balakot, India didn't respond after PAF's attempted/botched up raid). India had the perfect opportunity to decimate Pak's military. But what happened instead, Abhinandan was used as a bargaining chip, and Pakistan being Pakistan got the chance to embarrass India by returning Abhinandan and saving their rear, also made India look ridiculously stupid, for having nothing to show for after the PAF raid.
So, what happened there? US obviously intervened and put the release of Abhinandan as the clause for India not to escalate meaning, they didn't want India to escalate.
Forget about China and Saudi, they were mute spectators then and will be in future also, BUT, US is and always will be the biggest hindrance for India to take any action against Pak as that will mean, US will not be able to use Pak for it's strategic importance.
So, can Pakistan be brought down by sanctions and financial means, no, never, as they thrive on donations from countries who need them for strategic reasons, so it is an infinite cycle, the moment they are about to collapse, they always get a lease of life from one or the other.
If we look closely, the perpetual war that Pak is waging on India since since it's inception is being sponsored by US (money, weapon) and simultaneously blocking India from doing anything decisive against Pakistan.
Now, as far as my opinion is concerned, India should start off by taking out a few of Pak's army HQs with missiles after each of their IB/LoC misadventure (viz, beheading of civilian porter) and force them to escalate. The offensive should always be disproportional, thereby raising the stakes for Pakistan. Until and unless we play on a level field, Pakistan will inherently have advantage for the above stated reasons.