[Centurion2000]

Putting on the Carnak cap:

India will start a limited war with aims to take back the Kashmir.
Predictably they will stomp the bejeezus out of Pakistan who will then nuke Punjab and other places to extract revenge.
Then India will wipe Pakistan off the map.

[chilepepper]

India and Pakistan are probably BOTH just 'rattling sabers' right now. The problem is that the situation can quickly get out of control and even though they don't REALLY intend to do a serious war, and accident or incident may trigger one anyway, particularly since all the military pieces are in place to fight one.