You are in a lose lose situation..there's nothing there diplomatically, and Militarily - proxies aka terrorists are your best bet and you tried you darnedest to no avail. Just brought pakistan a virtual terrorist sponsor tag and your so called "freedom fighters" global terrorist tag.
That is exactly what I am implying, stop being nice and caring about what world would say they already give a damn about us so start exploiting India's internal weaknesses to maximum. I bet you it won't take long to bring India down from rising shinning status, world's favorite child to something where anarchy prevails and riots are the daily norm. And this does not require that much effort either, just motivation and a spark will do.