The thing is Pakistan is not content on just keeping its half of Kashmir, it wants all of Kashmir. India, on the other hand, is content on just keeping the half under its control.
Pakistan has been waiting 70-years to get all of Kashmir and it looks like it will be waiting 70 more. Pakistan doesn't have the wherewithal to do anything on Kashmir like it did in 1999. Its resources are limited and its economy is even in worst shape today than in 1999. India can well afford to spend 10x or even 20x in Kashmir. So don't worry about the economic costs.
And there will be no more Kargil like misadventures this time around. Tactical nukes are a viable option now, and the Indian Army is not the same in 2018 as it is in 1999. If Kargil proved anything, is that Indian military had severe shortcomings, but it is making strides in this regard.