Its clear that China is getting exceptionally bellingrent towards India. This could be reasoned in one of the two ways:
#1) China is practicing its age old deception tactic.
#2) China has ambitions of conflict and is testing India's response.
#1:
China is practicing its age old deception tactic. As an old chinese war expert Tsun Zhu says: All war is deception. Make your enemy believe you are near when you are far away and make him believe you are near when you are far away.
Now, the chinese are making India feel as if the focus is on India. The question is: is it because China is actually unprepared and fears losing the pshycological advantage to India? So is it practising deception here?
OR
#2:
China has ambitions of conflict in near future and is testing India. That would mean that they are testing India's response(military and political) to gauge it and prepare their attack accordingly.
India's Response:
Irrespective of whether China's belligerence is due to reason #1 or reason #2, What should be India's response. IMO, India should respond robustly. Quick, prompt and strong response can deter China from making any more adventures on its southern neighbour. India's poor resonse, I fear, could just embolden China further and that would be disastrous for all concerned(including China). IF India responds strongly now, China may postpone or cancel any adventurous plans they may have, lest it might just lead to further conflicts. So, to avoid a big bloody war, India must respond STRONGLY.
What kind of response that would be, is debatable. Some have suggested a nuclear test, I am not sure, but it can be considered. Some have suggested revoking our NFU, it can also be considered. Some have said that since India's nukes are not designed to work for NFU, revoking it is not the right way forward, I disagree. I think at the end of the day, what matters in nuclear situations is whether the other side can afford to risk it all. IMO, China wouldnt want to risk a nuclear conflict(however much China may be better equipped than India) just like India does not want to risk a nuclear conflict with Pakistan. This does not mean I support revoking NFU, but I think it can be considered as one of the viable options, but whether its appropriate or not, is a different issue which can be discussed.
Most important aspect is that India has to reply blow for blow. If Chinese cross IB illegally then shoot down. If Chinese cross LAC, take it very seriously with the highest authorities. India must show China that it is not for taking. If this is not made clear, I fear, China will only have bigger plans vis-a-vis India.