Since the train bombings in Mumbai in, July 2006, the peace process between these two nations is in tatters with future talks over the region cancelled. The Indians have directly implicated the Pakistani military with being involved in the train bombings. While General Musharraf is in charge of Pakistan it is unlikely that India will allow this hostility to escalate to full scale war as their major ally, the US, will be applying massive pressure against this.
But should General Musharraf be toppled following the Iran strikes, India would be very quick to seize on this opportunity to attack. Indeed, the US may even request such an attack to assist them if they were loosing control of that important flank of their theatres in Iran and Afghanistan.