The conflict between India and Pakistan is a major source of crisis which must be resolved if peace and development are to prevail in this region. One approach for identifying the costs of conflict and the strategies for minimizing them is the conflict resolution curve model formulated through regret analysis (based on costs).
The application of this model in the present context suggests alternative strategies, one being that India should encourage more formal bilateral trade. However, this solution is not feasible given the repeated terrorist attacks on India from Pakistani soil and the suspension of trade ties between the two nations. Another alternative is for India to strengthen its preparedness diplomatically, and this is happening through the Financial Action Task Force and other channels.