The option of demographic change in Kashmir should be explored.
But I believe it would be good if we start non Kashmiri settlements along the border regions. Not too close to the border with Pakistan(out of range of artillery shells) but creating an belt of territory populated by pro India people. Infiltrating terrorists will not be able to find shelter and food unless they penetrate deep into Kashmir.
The non Kashmiri population centres must be provided adequate security. We don't want them to become cannon fodder for the terrorists. Probably anti personnel land mines can be laid in large numbers to protect the approaches to the settlements. The Army cannot be everywhere so in regions where check posts and garrisons are not present, mining the perimeter of the settlements will deter the ingress of terrorists. Now for demining the terrorists would require special equipment and the process will be time consuming. Daytime surveillance cameras and heat sensing thermal cameras for night vision can help warn us in advance of any threats.
It will be an expensive process and some setbacks may occur. The terrorists may be able to mount a few initial successful attacks but I believe we will learn our lessons and make suitable changes in strategy.
There will be a huge uproar in some Islamic countries but we should be able to weather the storm. After all, all the attempts by the Muslim countries to get Israel to roll back the settlement of Jews in Muslim land failed. More than 50 years of Muslim pressure have passed but Israel does what it feels is necessary for its security.
To put the record straight, India does not conduct genocide of minorities in the country. To the contrary religious minorities have prospered. The Kashmiri Muslims legitimate interests will be taken care of and the settlement of non Muslims in Kashmir will in the long run spur economic development. We are not seeking to make the Kashmiris an hopeless minority but only making the Kashmiri life more cosmopolitan and Liberal. The economic interactions and interdependence between the the Kashmiri Muslims and the non Muslim Kashmiris(new settlers) will lead to peace and conditions of mutual benefit.
If India had been really prosecuting the minorities then the population of Muslims in India would not have increased after independence. In contrast, in Pakistan the non Muslim minority population has shown a steep decline after partition.
In fact even the ethnic minority Muslim population of Pakistan has declined. The only segment of population that has increased substantially in Pakistan are the Punjabis. The percentage of Punjabi Muslims in the country is increasing every year in Pakistan. Turning the Sindhi Muslims, the Mohajirs, the Balochis and Pushtoons into even smaller minorities. Punjabis are taking over the land and resources of ethnic minority regions of the country.