I am assuming in the OP scenario that Japan is not going to war with the allies until London falls.
I would advocate an Indian crush in this scenario as well. As for the European theater Germany needs to be thinking of keeping its fleet together. Either it stays in the North Atlantic attacking Russia, giving you a strong threat to Novgorod. Or it moves south and holds Gibraltar. Moving North is good because it threatens your main opponent, Russia from another angle and could force that Mega stack near Romania back. Moving south to Gibraltar lets Germany assist Italy in cleaning the North Atlantic coast and holding Gibraltar. Plus the threats from Gib work both ways, Axis can hit half of Africa and Most of the Americas.
I can’t remember who, I think it was Garg who mentioned the phenomenal idea of not taking Gibraltar but instead bombing the bejeezus out of it. Now the Allies can never use the AB/NB until they recapture London, then make money, then spend it repairing the facilities!