The Indian State will survive this, and other, crises. The Pakistani state already does not control its own defense establishment, is not able to limit the export of violence from its borders, and (in a desperate attempt to remain relevent) may pull soldiers who are now monitoring the Taliban.
Stratfor has a good take:
Strategic Motivations for the Mumbai Attack | Stratfor
Now, step back and consider the situation the Mumbai attackers have created. First, the Indian government faces an internal political crisis driving it toward a confrontation it didnâ€™t plan on. Second, the minimum Pakistani response to a renewed Indo-Pakistani crisis will be withdrawing forces from western Pakistan, thereby strengthening the Taliban and securing al Qaeda. Third, sufficient pressure on Pakistanâ€™s civilian government could cause it to collapse, opening the door to a military-Islamist government â€” or it could see Pakistan collapse into chaos, giving Islamists security in various regions and an opportunity to reshape Pakistan. Finally, the United Statesâ€™ situation in Afghanistan has now become enormously more complex.
By staging an attack the Indian government canâ€™t ignore, the Mumbai attackers have set in motion an existential crisis for Pakistan. The reality of Pakistan cannot be transformed, trapped as the country is between the United States and India. Almost every evolution from this point forward benefits Islamists. Strategically, the attack on Mumbai was a precise blow struck to achieve uncertain but favorable political outcomes for the Islamists.
Riceâ€™s trip to India now becomes the crucial next step. She wants Indian restraint. She does not want the western Pakistani border to collapse. But she cannot guarantee what India must have: assurance of no further terror attacks on India originating in Pakistan. Without that, India must do something. No Indian government could survive without some kind of action. So it is up to Rice, in one of her last acts as secretary of state, to come up with a miraculous solution to head off a final, catastrophic crisis for the Bush administration â€” and a defining first crisis for the new Obama administration. Former U.S. Defense Secretary Donald Rumsfeld once said that the enemy gets a vote. The Islamists cast their ballot in Mumbai.
It is foolish to trust the Pakistani government, because the Pakistani government is not powerful enough to control what happens in Pakistan.
We should do what we can to strengthen neighbors (Iran, India, China, etc), while coming up with smart policies that will allow us to firewall ourselves and our friends off from the worst of Pakistan’s exports.