The economic advantage will remain zilch, but the long term strategic one, both against Pakistan and against the Indian population is pretty promising. The former ensures that a massive defence budget remains a strain on Pakistan's fragile economy which unlike India it can barely sustain, and the latter ensures that there is a credible threat to show Indian progress against which in turn justifies spending on a large military force as compared to say a massive poor uplift program or otherwise.
Quite accurately though, the issue within the deeper Indian "think tank" if you will is that it is not about Pakistan but China..who since 62 have figured it out much better than India did that keeping a potential threat in check is to keep it engaged with someone smaller but potent enough to keep them bleeding. Helps especially if the said party is already interested in waging war or rather avenging history all the time.
As for the actual threat of war. Until those nukes stay, there will NEVER be a war between the two. The most that will ever happen are the heated borders and aerial intrusions. As I said, wars are a consequence of people having less to lose.. a desperation of sorts. When you have lots to lose you are much less inclined to risk it in a gamble as risky as war. Because even if you win it with a supposed victory ala WWI &II, there is no such guarantee that without actually occupying that land you won.. you will reap any benefits beyond prestige for a few years.
The only victors in any conflict are people like Lockheed Martin, General Dynamics, BAe, AVIC, MiG and all the other military firms and contractors.
