Indian Bluff.

India has to opress the people of Kashmir at all cost and make sure they have no oppurtunity to express their will for freedom. This occupation means antagonizing people in Pakistan who want Kashmiris to free of Indian oppression as Pakistan is today.
If it werent for Kashmir and the hostility is produces between the two countries, India would have no need for huge defense spending.

Take Kashmir out of the picture and their is no reason for hostility between Pakistan and India, and hence no need for Indian defense spending.

Keeping Kashmir oppressed and occupied, and continuously antagonizing Pakistan, suits the needs of your military hawks and your neo imperialist politicians, who would rather spend money on bombs then to feed nearly half a billion people in India who are still malnourished.
Make sense now?

These are also the same Indian who thought Siachin was a great idea, and still refuse to leave the glacier...