You pacify regions by giving them jobs and help them better integrate into society at large, if all you do is send soldiers without alleviating any of the problems you will just get more people dissatisfied with your rule. The problem with this for India is that they don't even have enough jobs for Hindus let alone religious minorities.
Also, India is closer with Afghanistan than Pakistan is lol. By your logic Pakistan should be given all of Kashmir.
Standards of living in India nor Pakistan are good at all, most of them just work as farmers. Theres also no reason why an Indian would be better than a Pakistani to get along with.
What China did with Islam is the exact same it did with every other religion. Stop spreading racist propaganda. imagine how you would feel if someone said: "A lot of folks are very blind to what Blacks are really up to, they think it's another race they can just ignore"
China controls Islam like it does with any other religion. In fact, it doesn't even recognize Hinduism lol, you want the rest of the world to not recognize Hinduism as well?