No you are wrong. Indian economy is already going south compared to China. In coming years without routes to oil and gas through Pakistan Indian companies will not be able to compete with Chinese companies globally which will get these transport routes. China is developing an pumping money into its south west to bring prosperity and reduce terrorism etc in that region. China is also assisting in developing infra structure in NE of Pakistan. They are also about to take over the running of Gwador which they financed. This and the NE will be linked. So mate India needs Pakistan more than Pakistan needs India.
The rich Hindu Brahmin's that control the majority of assets and economy in India will do a deal with Pakistan because they like money rather a lot.
That is the reason that Mushy deal on Kashmir has never been signed. Pakistan High command knows this and is holding out.
China in one quiet but swift stroke has changed the geopolitical and geostrategic equations in this critical region which borders China, India, Afghanistan, Pakistan and Tajikistan. The deployment of Chinese troops in this region even though for the ostensible purposes of infrastructural improvements of the Karakoram Corridor heralds a new phase of China flexing its muscles not only against India but more significantly against United States in the wider global context.
Chinas Obtrusive Presence in Pakistan Occupied Kashmir: Implications for India and United States
London, Oct 10: After the launch of his new political party, All Pakistan Muslim League (APML), recently, Pakistans former president Pervez Musharraf has said that India and Pakistan were close to a solution on Kashmir some years ago.
We were as close as drafting a final pact for a solution. Final drafts were exchanged through the back channel and Manmohan Singh agreed with my four-point formula, Musharraf told NDTV in an interview last night, when asked how close India and Pakistan came during his Presidency with regard to Kashmir solution.
Asked if his famous four-point formula for Kashmir was the only pragmatic template within which Kashmir can be resolved, Musharraf said: You said it and let me tell you very proudly, those parameters are mine. I thought of them, because I realised that when I was talking to everyone on Pakistan side, the Indian side, the dispute is the Kashmir dispute. What is the solution? Not one of them ever gave me a solution. So therefore, that set me thinking, and that is where I came into this issue of demilitarisation, maximum self governance, this over-watch and all that, and making the LoC irrelevant. Now you asked me how close we were, we were as close as drafting the final agreement.
India Pakistan were close to Kashmir solution Musharraf Lastupdate:- Mon, 11 Oct 2010 18:30:00 GMT GreaterKashmir.com
So simply all Pakistan has to do is sit it out to get a deal that it is acceptable to it or Indians will continue not to fulfill their potential and ever feed their large population. You also have to remember that India also has unresolved border issues with other mainly China as well