A good way to understand this whole paradox is in the figure below
View attachment 422
This is the result of a new world order post-Gulf War situation. Sourced from Space war & security by S Chandra Shekhar Source:
http://isssp.in/wp-content/uploads/2016/03/Space-War-and-Security-_A-Strategy-for-India.pdf
Technically the whole Cost vs Benefit Analysis can be summed up by the points as under
Cost
Technically
1. The test needs to be announced for the safety of all overhead manned and unmanned flights passing through the possible coordinate system. This implies we have to declare it first that ASAT test is happening for safety reasons.
2. Creation of debris of satellite impact which may have a long-lasting impact near that particular orbit and may have some parasitic effect or some impact possibility to nearby Space-based Assets.
3. The electronic simulation test that we carry out as part of BMD is a simulation-based analysis whereas a physical test involves verifying every bit of the same BMD capability under real live environment conditions with variables (like possible failure situations during 1st attempt of interception)
4. There is a clear distinction between ASAT being under BMD implying ISRO is not involved in this test at any time and its DRDO which is managing the whole system and context.
Geo-Political Considerations
1. The close cooperation of Pakistan and China in defence and space field implies a distinct possibility of a Pakistani ASAT ability over time. An ASAT ability is not so simple to achieve but with technically "help" for longer range Ballistic Missile beyond present 3000km or with existing ranges with fatter payload, this possibility always remains within the decision-making matrix. There can be marked an acceleration in this program especially wrt to CPEC aspect.
2. In International politics, many of the countries might condemn and limit their cooperation with us. There is a distinct possibility some of the nations with deep economic aid and cooperation from China may be propped up to lead this criticism. The chances of Sri Lanka or even Nepal towing a similar line cannot be ruled out as well.
3. In the context of China India issues, there would be a hardening of stance and increase in rhetoric to build an image favouring individual nationalistic citizens.
Benefits
1. In terms of capability with proven technology, the position of ASAT is part of a coercion ability which allows the countries with this capability to push forward their views and agendas with fewer compromises. This will clearly mean that ASAT test enables India with some meaningful scope of manoeuvre as China also understands that India won't get coerced easily.
2. In terms of technical blocks to be proven, the whole ASAT test is based on the backbone of BMD infrastructure or the ability to track Space-based assets in real-time with high accuracy. This implies the network of radar systems with optical and laser ranging systems to give a complete situational awareness is also proven as a by-product of this test. That will also mean the airspace above India and Indian subcontinent or areas of interest are fully under our surveillance, detection and reaction capabilities including our Sea Lines of Communications.
3. The incorporation of Space-based assets (offensive ASAT and defensive BMD) into our nuclear triad and network-centric domain will mean we have also moved ahead and is looking at maintaining a higher level of deterrence posture and cost of conflict for any state with India has moved to a higher realm. This, in turn, brings into a peace based timeline from survival perspectives and economic resources needing to take benefit of the gaps aspect.
4. In terms of this whole infrastructure and capability demonstration, a larger part of skilled manpower gets consumed into the whole apparatus of an industry to be part of the preparedness and post capability monitoring and work.
5. The capability demonstration also helps in future possibility of a rogue satellite controlled by a terror outfit to be taken out by India for itself or for its friendly nations by soft and hard kill options, thereby giving many smaller countries an umbrella of a protective system. (SAARC Satellite Example)
The ASAT demonstration done with due responsibility will only enhance India's position in the Scientific community and globally recognised as a true emerging power which has the best possible chance of evolving into a further responsible power. This, in turn, helps us build a solid position in the new world order emerging in the global arena.