Be a part of an active alliance against China and keep hitting them on LAC
Whenever they intrude
Actively boycott their products
Raise Tibet issue and establish Relations with Taiwan
So that basically implies doing nothing.
An active alliance against China doesn't work in our favour, for one. I had already touched upon the subject. In order to have an active alliance, we need to buy American gear in order to become compatible with their alliance in the Pacific. That is both unaffordable and definitely doesn't suit our interest because the Americans will retain control over their gear, particularly communication gear, which implies Americans are going to be sitting in Indian bases in India. But more importantly, we will be called to fight American wars all over the world. At the same time, they most likely will not and do not have the capability to fight for India in the Himalayas when we are involved in a fight with China.
Boycotting their products does little because we are highly dependent on most of those products. At best, of the massive import bill we have with them, only a few billion worth can benefit from import substitution programs. Any such plan will take a decade to meet our expectations. We can start somewhere at the very least, but this doesn't really hurt them, unless a lot of countries join in.
I agree with Tibet, but that's a very long term game plan. Ultimately, it's only posturing since the Tibetans themselves have no power to change anything on the ground.
Taiwan agrees with China when it comes to the border issue. Even they are technically our enemy on this subject.
As for "keep hitting them on the LAC", you need to specify the scale. If we get into localised shooting matches with them, they can also retaliate the same way. Both are more or less on par, but they have the ability to outspend us in this department. And we will both get an endless stream of bodies. The only benefit for us is there will be tremendous social impact in China with parents and grandparents losing their only child. But that's not something the CCP is going to care much about given the relatively small body count compared to the size of their population. CCP will most likely send the undesirable sections of their population as cannon fodder to face us, like their prisoners, minority groups etc, like what Pakistan does in Kashmir, which will benefit the CCP in the long run.
Now do you see some of the problems? I'm quite interested in knowing how the govt will actually react, but there are not as many options that will be visible to the general population. A lot of the retaliatory work will have to happen behind the scenes instead. Unless the govt thinks we can fight a limited war with China and get away unscathed.