CPEC had many advantages except development of Pakistan. CPEC main idea is to withdraw western aid money to Pak in form of debt repayment. Also it can be seen as strings of pearl. Shortest route from Arab without any adversaries in route. Safety of CPEC inspired by US military transport to Afghan without any major halt.Hitting CPEC and blocking KKH is a job that can be done in a few minutes by IAF without any international repercussions. Blocking China in IO is near impossible because it will block all the sea trade.
CPEC gives zero military advantage to China. Not to mention India has disputed it officially. Any transgression on India's border by China will result in all the investment gone into the drain. More China invests in CEPC more it makes them nervous about India. By abrogating 370 India has not given a message to Pakistan but shown its intent to China how seriously we take this so-called dispute.
It is not India who is desperate to give access to China, but it is China's script to keep India confused about making an alliance with USA.
The Idea of remaining isolated and blocking this and that shows old and insecure mentality. India won't be able to sustain its growth if remained isolated. The trade deficit in favour of China is not going to stay the same forever. The lowest denominator of any connectivity lead by China is going to serve India vis a vis trade relationship with SE Asian countries. The look east policy is all about connectivity. If China is becoming part of this endevour then let it be.
The security challenges can not become impediments to stop this connectivity. It is better to be rich and handle these challenges than be poor and still endure the same.
China is not a blue water navy, so in last decade they made plan to have listening ports and docking rights in various countries. India can be seen as threat because we covers sea route from Arabian sea to Malacca Strait which makes us at very strategic location. But because till now we cannot spread our navy, china started meddling with countries like SL and Maldives. Andaman is reply to string of pearls, its act as deterrence.
One thing I know for sure if India start making acts to take POK back, China will not sit silent. Till now other than giving joint statements at various forums China did not do anything. So taking back POK will not be done in few years. India first priority is to normalize JK and make unrest in various parts of Pak.
Regarding India's growth and relationship with US and China. Firstly India does not need China for strengthening our relationship with SE Asia. Culture is playing big role there and we have big potential.
I agree with you that we neglect connectivity with various countries. We do talk more and work less. In Modi first term many line of credits were expedited to various countries ex Mongolia 1 Bn, Vietnam 500 million but most of them never utilized yet. In congress we have many project going in various countries which deepens our relation ex salma dam afghanistan. But now we dont have good connectivity in our backyard. SE asia requested our active participation despite being member of Asean. Modi come take photos and go back, no substantial work on ground. If in remote part of Africa people respect Indian because we are working as peace keeping force then it is not big achievement, it can be replaced.
India was destined to have good relation with US, France, Russia or every polar available on planet. Despite having so much potential we cannot ignore superpowers despite having it other way around.