Or according to Indian perspective, Pakistan will understand that solution of Kashmir is not through "bleeding India with a thousand cuts". It will reign in the terrorists (there is "someone" providing arms and trainings - in India civilians don't carry AKs so clearly coming from outside). Better sense will prevail, Pakistan will give up its design on Kashmir (esp. as gap between India and Pakistan grows) and "sue" for better relations.
Might be far fetched, but many in India believe that Pakistan will eventually think of its people's welfare which can accelerate leaps and bounds if relations improve and trade opens up. An Made in India car or bike selling in Pakistan, fresh produce from India, Kesar being sold in India etc. etc.
For this to happen, Pakistan should take an unambiguous and consistent approach to terrorists and terrorism. This is not to say India is "doodh ka dhula" - though I don't have enough facts/figures - India might be supporting elements that widen the fissures in Pakistani society. All I can say (unequivocally) is that no terrorists against Pakistan are being trained or armed in India while same can't be said about Pakistan.
Its a longer debate and I don't think India or Pakistan are saints... but somewhere somehow people will have to recognize that you can't solve this problem through violence