I don't quite understand what is so terribly amiss about India keeping troops in any part of India including J&K. Afterall the soldiers need to be housed and trained and kept up somewhere, so why not J&K? Pakistanis may not like it but that only adds to the attraction of the idea. But the core reasons are that's where the border is, that's where the trainable terrain is. But that is all about defense strategy and not necessarily all of foreign policy.
I think India's foreign policy construct has to be significantly moved away from the erstwhile weightage of defense matters, or even current weight on pure economics. Foreign policy has to be IMO equally used for defence, economic development, human development and poverty alleviation.
The reason I separate human development and poverty alleviation from economic development may or may not be obvious.
Things like quality of education, hygiene matters, space exploration, medicine and access to healthcare, removal of caste practices - these constitute human development. These are matters India and rest of the world all have problems in and India has a lot to offer the rest of the world; and a lot more to gain from foreign experiences. We need policy vehicles to trigger, launch and sustain these interactions.
Poverty alleviation in India is no longer simply a matter of economics of supply and demand. Corruption, caste politics, and state-to-state politics have become key stumbling blocks. India must learn from the USA on dealing with state to state blockages, and food distribution mechanisms. Corruption eradication requires cultural mechanisms as well as vigilance up gradation. Again something UK and Germany are very good at, that India can benefit from emulating topical policies.
And so on.