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Assessment is dynamic, If the pakistani position improves in the "definition" as set by GoI, India would/ should come to the table, but in their assessment, If they see the gap increasing in India's favor. What you mentioned is phase shift, where certain events would trigger the phase shift where Pakistan's position is consolidated way faster than expected, it would be a very good time to negotiate at that moment according to the current "plan" as it seems.
These are my interpretations of the what's going on, and I can be completely wrong and naive. The most unfortunate part of the entire debacle is dishonesty on the part of both the nations. In my opinion this candyfloss trade and cricket non-sense can go in the dumpster and we need to take on the core issue head on. Although my solution will be frowned upon by "patriots" on both sides, kashmir needs to be divided by line of actual position, there needs to be 7-12 road connection on both parts, and kashmiri residents need to be given special status from both countries in education, government jobs etc for fast tracking their pending development. Freedom of kashmir as an independent state is no longer a viable option. India being the bigger country needs to play a more positive approach and bulk of the expense for resettlement and aid of kashmiris on both sides; but to take such steps, pakistan too needs to crush anti-militants brutally, for India to take such steps.
I agree with your assessment.
GoI has indeed chosen the game of waiting, trying to -in vsdoc's words - put distance between itself and Pakistan.
And it seems to be favouring us mightily. An assessment I read is that once about 3 decades of advantage over Pakistan is reached, Pakistan will no longer be in any position to demand anything in negotiations or defend against an Indian attack save for nuclear weapons.
As of now, we have reached 1.3 decades. It seems in all likelihood that Pakistan will be unable to substantially alter its economy before 2020.
So we would in anycase have around 2 decades of advantage at the very least, what remains to be seen is how much further can GoI extend this - by any means.