Answer by Reshub Peer:
First things first, I don't know how you can ask such a biased question and expect an unbiased answer, I will try my best to provide logical reasoning behind India's action.
Kashmir is an integral part of India. Please understand that this is the most important reason. India aspires to be a superpower and superpowers don't just give away an integral piece of their land just because their neighbour is throwing a tantrum.
From a strategic point of few, the mountains of Kashmir act as natural barriers to any invading army. Keeping control of those peaks are crucial to India's national safety on a whole. Pakistani army took control of one of these peaks () during the Kargil War. Indian soldiers went to an extreme to wrestle it back, because of its strategic importance. Lets say India gives away Kashmir to Pakistan. With all the natural barriers removed, the Pakistan army then has a clear run into internal parts of India, and well today its Kashmir, tomorrow they might want Punjab.
You are mistaken when you say that "Kashmiris are willing to go with Pakistan" (Please note I am talking about Kashmir still under Indian jurisdiction and not PoK or what you might call Azad Kashmir). I have been following my motherland's sentiments and politics for years now. Yes, they are not totally happy about Indian government's treatment towards them, but I can assure you they don't want to be a part of Pakistan as well. If anything, they want a separate country for themselves.
Becoming a separate country is the worst option for Kashmir. If Kashmir is ever declared a nation of its own, within seconds of removal of Indian army from Kashmir, the Pakistani Army will attack and try to conquer that land (similar to 1947-48) and Kashmir will have no chance. My best guess is that after Paskistan takes over, Kashmir will eventually become a breeding ground for extremist jihadi groups.
For the sake of argument, lets just say Pakistan doesn't do that ( very improbable), Kashmir will be a country surrounded by three nuclear powers and that is quite a precarious position to be in. In terms of resources, Kashmir will be low on human capital and with effectively have medieval era infrastructure. I don't see any of the industries thriving either.
Quoting the part of your question "Why don't Indians think about the lives that are being lost everyday as a result of the conflict?" — Clearly you seem to suggest the onus lies on India, but Pakistan is equally, if not much more, responsible for the lives that are lost in the valley everyday.
As things stand, India is the best option for Kashmir, and you know what – it is also an integral part of India. (the repetition is on purpose)