Okay, a few things.
One, the Khyber Pass is alot poorer than modern urban India, and they are armed to the teeth, so the idea that Indians couldn't afford guns, not true. They probably couldn't afford some of the collections I've seen in America, but they could afford guns.
Two, these guys who did this attacked in an area filled largely with Brit and American tourists, who even if you have a CCW and carry everyday, you wouldn't be there.
Three, this would be a bloodbath regardless. The pic I saw of the terrorist they snapped looked like he had an AK and a backpack full of spare mags and who knows what else? Even with CCW this would have been terrible simply because of the shear number of bad guys.
That being said, the death toll is absurd at this point. If there had been CCW with a small minority of folks carrying, the death toll would likely be much smaller.
But, what can you say? The Indians value controlling their population more than having it be safe or free. I mean come on, if a .32 revolver and 10 rounds of ammo is the most you can do if you jump through the hoops, think about it.