Operation Sindoor started as a punitive strike meant to re-establishment the Indian deterrent and decapitate some JeM and LeT leadership, aka settle the score and quench the bloodthirst of the BJP Hindutva electorate bloc that Modi primarily draws his support from. That was and officially still is the Indian strategic objective.
The Pakistani are primarily concerned with the Indus Water Treaty. The IWT was suspended/cancelled by India in the aftermath of the Pahalgam terror attack, to be used as a bargaining chip by New Delhi. The Indus is vital for Pakistan because the majority of its water comes from the Indus and its 6 branches. Nearly all Pakistani threats are linked to the IWT. Without the Indus most of Pakistan would turn into a desert. Despite the Treaty suspension it is not sure to what extent India is able to actually fiddle the water supply.
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The scope of the operation has de facto widened since Operation Sindoor started, primarily due to the swift Pakistani tit for tat reaction. That's the escalation ladder, where two foes either try to one up each other, or one side established escalatory dominance ergo starts controlling the pace and outcome of events on the ground.
The current drone and missile strikes are not just random acts of aggression. Both India and Pakistan are targeting radar systems, forward airbases and AD systems. Strategic bomber ABs and missile silos could be next, aka both sides are trying to degrade each other's integrated AD systems, radar capacities and ISR capabilities. If one side manages to achieve air domination it will tilt the balance of power possibly leading to concessions at the negotiating table at best, and domestic unrest, economic collapse and loss of confidence in the responsible political+military elite at worst. Especially Pakistan has a very brittle homefront, dealing with two growing insurgencies in the North and West and still reeling from the violent Imran Khan/PTI crackdown two years ago - which brought the current junta to power. It's fifth generation warfare and one way to decide modern wars between peer competitors barring large scale troop movements.
As for redrawing the LoC, that's still quite a few steps away and would require significant logistics and troop build up. To me Modi seems to be to prudent a politician to take such a risk, and the Pakistani economy is too weak to support a large scale invasion of enemy terrain. Moreover too many players on international stage would lose freak out if that'd happen.
