You have to give it to the Indian establishment and their thought process. You are poking your nose in the games played between big powers , China-America-Russia, and you believe you wont face the consequences?
a) Pakistanis may not want to believe it. But, India, under Manmohan Singh & under Narendra Modi, tried to better relationship ship with Pak [without giving away kashmir]. It did not work.
b) So, Modi has spent lot of energy in improving relations with China. It did not work either. However, I believe Modi will keep trying as much as possible, as there is no option. Growing the economy is most critical.
c) Now, India has no choice other than aligning more closely with America.
d) I am not sure if China did a smart thing with it's recent antics. Please remember, India is a huge market, and really indulging them with huge trade deficit etc. They have surely lost the 5G market of India for sure. It is for the chinese to judge themselves.
e) India will be (& must be) very wary with China. In the history of mankind, I am not sure if there is any other leader who is as powerful as Xi Jinping with such a huge economy, and rapidly improving military. Such concentration of power is always dangerous.
f) If I were the leader of India, I would "manage" relationship with China, and keep growing the economy. Gradually, push the chinese out of huge investments etc from strategic areas and reduce trade deficits, keep growing relationship with west, keep growing military relationship with America.
g) India has lots of problems internally. For the next 20 years, it is better to concentrate on economy while "managing" relationship with China & Pak.
h) Essentially, the chinese told India, that trade deficit or similar indulgences does not matter. We (chinese) will do whatever suites our (chinese) interests short-term or long-term. you (India) be damned.