Earlier quoted context omitted.
> India wants peace Not really. There are options for a negotiated peace that involves swapping land, specifically, ceding Muslim-dominant territory to Pakistan and setting borders along rivers. That's anathema in India because there is broad-based antipathy towards Islamabad, historically, and Muslims, recently.
> ceding Muslim-dominant territory to Pakistan Why would India do that? Why would a unilateral surrender of land be considered valid terms for peace? > swapping land In a fair swap, what land would Pakistan offer in exchange? > Muslims, recently Pakistan doesn't have a stellar reputation for treatment of its Muslim minorities (Ahmediyyas, Ismailis) and non-Punjabi muslims (Balochis, Pasthuns, once-Pakistani-Bengalis)…
Because you trade it for more than it's worth to you. America gave up the Philippines, for example. Every decolonisation effort could accurately be described as "a unilateral surrender of land."
> what land would Pakistan offer in exchange?
You'd probably need China to participate. Maybe Siachen or even areas of Sindh? It's a long shot. One of the elements would almost certainly be co-ordinated anti-terrorist policing. Maybe guaranteed by China.
> I'm inclined to consider India a safer nation for most muslim denominations
I am, too. But let's be honest, neither side is concerned with the wellbeing of anyone in Kashmir.