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.