Pakistan has twice now looked the other way at Major terrorist attacks happening in India rather than warn the government and twice now nothing has come of it because they're not allowed to go to war when it would screw with capitalism.
India's official stated position is to foment disturbances and separatist insurgents in Pakistan. Go look up the statements of senior Indian officials (foreign minister, interior minister, etc.), won't be too hard to google. Why would India/Pakistan inform the other side of imminent terrorist attack? During the recent terrorist train hijacking in Pakistan, while the event was ongoing, Indian media gave full coverage to the masked terrorists, lauding them as freedom fighters.
As to war, India has tried limited "surgical strikes" with embarrassing results. India has substantial edge over Pakistan in a conventional war. Consequently, Pakistan hasn't signed any "no first use" of nuclear weapons.
There are hard line dumbasses on both sides and there won't be any progress in the foreseeable future.