Could not resist, creating a throw away account, just for replying to a topic, which is very close to my heart.
About me: I am a liberal in world view, but a practicing Muslim. And not nationalistic, but love India and what it represents.
Brother, your note is well thought out and well meaning. The idea of a "West India" is very novel. And it appeals to me. But at the same time, I would like to give a sense to you of what its like to be an Indian Muslim of the upper class, in response to your "...being a minority in a Hindu majority India ultimately would have a ruinous effects on Indian Muslims".
On Prejudice: It will be a falsity to say, that there is no prejudice at all. As obviously India is not a utopia. But also, suffice to say, that the majority of the people (and that would naturally be more Hindus than others) one encounters in life are very secular and welcoming. And by and large India is a meritocracy. The Muslims suffer more, because of their own backward cultural mind set than anything else. For example, lots of relatives who are not doing well in life would complain about prejudice in job selections, etc. for not doing so well in life. But its very apparent to me, that the fault lies more with their attitudes towards life - not wanting to put enough hard work.
On Government/Establishment's attitude to secularism: I am actually utmost thankful, to the founding fathers of the nation like Gandhi and Nehru, that they did not cast the nation as a tit-for-tat reflection of the way Pakistan was founded. By and large, India is a secular nation, and that notion is oft repeated and maintained by media, politicians and the like. I can safely say, that being a Muslim in India is perhaps 1000 times better than being a Hindu in Pakistan.
On representation of Muslims in various domains: There are countless examples: To cite a few random people: in the business world Azim Premji (founder of Wipro) is one of the most respected. The bollywood is totally dominated by the Khans (so much so that one popular movie 'The Wednesday' had a joke on a Hindu actor belonging to the 'minority' hence needing more protection). Sports: India is Cricket Crazy, like Pakistan, and in the past few years, 2-3 Muslims have been making the 11 (which is more than the %age of Muslim population in India). And since I am randomly giving examples, I can as well cite myself (a hacker news reading, tech geek, aspiring to change the world (at least India) using programming ...think we will all agree is not any less of an aspiration than aspiring to be a movie star :-) )
In fact I would go ahead and say, that had Pakistan not being created, the position of Muslims in the region, would have been all the more stronger. Even after creation of Pakistan on the basis of religion, by and large Muslims are very welcome in a pluralistic society that India is. So what if, if the poet Iqbal, had dreamt that dream of his a bit more inclusively.
But yes, things can be better. There is a right wing here as well (liberal Americans should immediately think of GOP), and they want to pander to the extremists sentiments and every decade or so things get out of hand (most recent being Gujarat 2002). So yes, honestly, there are problems.
I think, the model for India, for establishing a just and civil society within, should be like that of the USA. America has a history of committing mistakes, Slavery and the treatment of the black people. But they came out of it so strongly within such a short period of time. Thanks partly to great people like Martin Luther King.
So India, also has a choice. Just like every nation has a choice all the time. By and large it has done very well. But it needs to keep doing well.
And lastly, I wish, you Pakistanis also all the best. Peace.
Edit: Fixed a grammar error.