a) India would rather deal with a civilian government and has signed peace accords with Zulfikar Ali Bhutto (Benazir's father) and more recently with Nawaz Sharif. The pakistani military doesn't want peace because peace means fewer generals and fewer weapons systems so the top brass has no way to make billions if there is peace. India is actually concerned about the rise of muslim fanaticism and with a population of some 180 million muslims in India, doesn't want a Talistan next door.
b) India is now a donor country (in case you haven't kept abreast of the news) and does not receive foreign "aid" anymore. Instead, India is a major destination of foreign direct investment which India solicits.
India's goal would be to balkanize Pakistan starting with independence for Balochistan and Sindh which makes the militants landlocked so they are easier targets, being surrounded by enemies on all sides.
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