Significance implies relevance when compared with something else of a personal nature. What is significant to you doesn't matter to me and vice versa. I don't see how 'significance' will have any effect on the Indian position on Kashmir.
Who's gonna punish us?
Principles of partition were, simplified:
- Muslim areas for Pakistan
- Hindu and other areas for India
- Princely states can decide if they wanna join either one or remain independent.
The third option pretty much leaves the decisions to the ruling figure. Since Kashmir was a princely state, the decision would automatically fall to the king for him to do as he pleases.
Now you could argue that as a Hindu king reigning over a Muslim population, his decisions would be unfair to his citizens as it represents his personal choice and not the best interest of his people, but that would bring us back to my earlier argument of the botched up partition.