We made a fundamental military mistake of not securing the area in strength before we attempted to improve our border infrastructure in sensitive areas. The PLA preempted us.
India is in a catch-22 situation. No government will survive a setback on the LAC. Every time China precipitates the situation, even with limited forces, we have to be prepared for the worse, which forces us to mobilise at a much larger scale. Ideally, we must seize the initiative for quid pro quo actions either preemptively or in response. However, our military capability imposes caution. But we can certainly give the aggressor a bloody nose and stalemate it.
Be that as it may, we have the capability and the will to stare China down and force it to blink. Neither country wants war, hence diplomacy has to be given the first priority to restore status quo ante 1 April 2020. However, if diplomacy does not work, then India should be prepared for border skirmishes and even a limited war.