1. We spend precious resources (human, economic and political) in Kashmir because of threat from Pakistan which can be better utilized for development.
2. Army deployment in Kashmir has created a paradoxical solution - Army is there to kill terrorist but it is deployment of army itself which is making more militants.
3. People of Kashmir are not happy - Period
4. Enmity with Pakistan is denying us the precious short access to Afghanistan and CAR.
5. Huge market of 200 million people is present right in our background with whom we share cultural, lingual, religious and ethnic ties. If our problems are solved we can turn into biggest supplier for Pakistan.
6. Arms race and existential threat of nuclear destruction.
7. Rationale for Pakistan to keep sending terrorist or as they say providing moral support to freedom fighters.
8. Closure for 180 Millions of our own Muslim Citizens
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Wow, you blindsided with this monstrosity, mate!
You are absolutely right that Indians would have problem with this, and rightly so! Let me try to rebuke you, point by point!
1. We spend precious resources (human, economic and political) in Kashmir because of threat from Pakistan which can be better utilized for development.
What makes you so sure that everything will return to normal after you have handed over the keys of Kashmir to Pakistan?
2. Army deployment in Kashmir has created a paradoxical solution - Army is there to kill terrorist but it is deployment of army itself which is making more militants.
Are you even for real mate? Are you even serious when you say, it is the ARMY deployment that is making more terrorists? Do you want me to remind you WHY the army had to be deployed in the first place and what was the situation there before the ARMY had to be rushed overnight?
On side note, I think it is
the success of Pakistani propaganda machinery if saner Indians like you start to believe that Indian army deployment is making more terrorists!
3. People of Kashmir are not happy - Period
Many people at many other places are unhappy. So?
Happiness is a state of mind, and there is no guarantee that you will attain Nirvana as soon as the flags are changed. It is NOT as if Pakistan is the place to go if you wanted to be happy!
Give them some time, they might as well get used to live in India and still be happy.
4. Enmity with Pakistan is denying us the precious short access to Afghanistan and CAR.
I tell you this much. The access to Afghanistan and CAR has been overstated and exaggerated. I mean, we are doing perfectly fine even without access to Afghanistan and CAR.
What's the point of wishing for access which comes at such a huge cost?
5. Huge market of 200 million people is present right in our background with whom we share cultural, lingual, religious and ethnic ties. If our problems are solved we can turn into biggest supplier for Pakistan.
You completely ignored the fact that
the Pakistanis forewent a market of 1.3 Billion for the sake of Kashmir! Is it really that hard to understand where their priorities lie?
6. Arms race and existential threat of nuclear destruction.
You must a die-hard optimist to believe that the Arms Race will stop the moment Kashmir sacrificed!
Out of curiousity, what do you think the Pakistanis will do with their hundred odd Nuclear Weapons after they get hold of Kashmir? Thow in the recycle bin?
And what will you do about China? Hand them Arunachal Pradesh?
7. Rationale for Pakistan to keep sending terrorist or as they say providing moral support to freedom fighters.
Nope! That is what a 'Islamic' country would do to a 'non-muslim' neighbor (which is even worse in case of a 'Hindu' India because our idol worship) even if there was no such thing as Kashmir.
Look around the world for clues, look what the Muslim majority nations do with their non-Muslim neighbors. And I don't blame them, they are only fulfilling their religious obligations!
8. Closure for 180 Millions of our own Muslim Citizens
I must say, this last point of yours, has to take the cake of all! What does this even mean mate? What kind of closure?
To be fair to my Muslim country men, I have never heard one sane Muslim, outside Kashmir, saying that Kashmir is an unfinished business. So please stop misrepresenting them.
But that's fine, as long as it's what you ALONE want. 
