What this kidnapping had done?

People in the streets sang, danced, and shouted anti-Indian chants during the celebration following the militants' release.
A sign of how much the situation had gotten worse was one of the shouts, Jo kare khuda ke khauf, Utale Kalashnikov (All god-fearing men, take up the gun).

Many claim that the kidnapping marked the turning point in the Kashmir insurgency. This group claims that releasing the militants was a grave mistake.

"The JKLF would not have attacked Rubaiya, they claim, if the V P Singh government had not acted responsibly. People believed they could gain independence if they could complete this task while being threatened with a weapon."

A senior police officer who formerly worked in Srinagar. "India was initially brought on knees in front of the crowd. They got the impression that (independence) was close by as a result."

Source:https://web.archive.org/web/20070525190301/http://www.rediff.com/news/1999/dec/08blood1.htm