First, I begin with full condemnation of Kasab and his associates. they killed innocent civilians in a cowardly manners I strongly condem that affair.
Regarding Indian response to such terror act in future, i think India has two options in all,
1. start a war with Pakistan limited or unlimited
2. continue diplomatic/ecenomic bullying of Pakistan.
1 First option is choice of many even outside india. All those who want to hold Indian rise in the region will be keen to force india into a war. If india does not end up the war like 1971, India will be looser in the end. If India succeed in 1971 like state, it wills till loose economic targets that She has set for herself and hence She will be never able to catch other rising economies. and if Pakistan succeed in playing Muslim card it will severly hit indian bussiness in Middle east for atleast a decade or so.
If indian use Option no 2, India has ability to inflict big damage to Pakistan but it will be imperceptable to common Indians hence it will be hard to raise Morale of Indian ppl. Its economy will continue to rise, international stature will grow bigger but people of both side of border will never be able to measure their success or failure in a tangible way. This scenario may lead to present mindset to persist for longer time.
In my humble opinion the best option for india is to use composite solution, better intelligence to pre empt such act, enhance security for public and a sincere effort to settle issues with Pakistan in such a way that Pakistan should not feel bullied.
feel free to to disagree but you are not allowed to troll.
Best wishes!