You don't understand the situation then my dear. "Common people" in Pakistan do not own anything or any power, never had. Right now you do not even have a government answering to common people. It's not the common people of Pakistan that India is dealing with. It's the state of Pakistan, more specifically its armed forces that are an independent power in Pakistan with almost zero civilian control.
Unfortunately, the common people in Pakistan are forced to feed and support its forces via taxes. So, that makes, them a necessary target to destroy. Both Armed forces because they are existential threat to India and common people's economy in Pakistan because that is what feeds Pakistan military establishment, even if unwillingly.
And you are absolutely wrong to think that this "issue" will stop at Kashmir. For Pakistan's military establishment to thrive, it will need an enemy. Remember, what Munir said in his speech just before this incidence? "we are different from Hindus". Nothing stops at Kashmir. Nothing. Because for Pakistan's military to exist, it needs to justify its existence. If "Muslims are different from Hindus" as Munir said next will be Hyderabad. West Bengal. Mumbai.
So there is no option for India but to destroy Pakistan's military's war fighting capabilities. By destroying Pakistan's economy via Indus water redirection so that Pakistan's army looses financial inputs needed to secure weapons and equipment. And destroy Pakistan military by direct fighting or by covert means. Unfortunately, there is no other option left here.