is it worth it to hold on to a state, half occupied by two foreign nations, at the sake of security and development of rest of a country?

There is no question of "holding on". Kashmir is a state that has been an integral part of our country since our independence.

If you allow them to take it then they will try for more. Our foreign policies have been weak and ineffective. A major part of India is occupied by other countries but in maps etc. we are not told of it.

i agree..if you give aay this, some more will be lost...he who cannot fight for what is his by right, will be a looser in life.