India is in a dire situation with covid19 (high infection, high unemployment, gov lacking ability to handle the situation). Trump/Us is also likely to suspend h1b program while us unemployment is high which will further cause issue with their IT back process business. That along with chinese factories are likely under thread of being targeted to be moved back to the usa. They need to stroke nationalism to divert the attention of the masses.
Well, it's clear the governments in both India and China didn't expect a lethal incident to happen, but it has happened.
In China, the media barely reports on what happened.
In India, the media is even more irrational and emotional than usual.
So the Modi-BJP government wants to look strong and competent, particularly since India is suffering economically, but that is true of every government in the world.
Plus the BJP is very much a Hindu supremacist political party, so nationalist impulses come easily.
Overall, I think China should support Modi in crafting a public narrative than India has successfully defended Indian territory.
There's no advantage in China further humiliating the Indian government.
And this will reduce anti-China sentiment that the Indian public feels.
We've seen that the BJP/RSS political machine is very adept at manipulating the masses with grassroots propaganda, so I think Modi will get away with this narrative. Remember that 38% of Indian children under 5 years old are stunted from malnutrition due to poverty, so you get an idea of how easily the electorate can be led.
Going forward, India is going to be far more wary/hostile to China, and I don't see any way to change this.
But China does still have to have enough sticks and carrots to keep India non-aligned,