This is a complicated subject. India not picking a side in this conflict can be seen as a net positive for a couple of reasons. First, they are the top of the list for future mediation, which could be necessary at some point in the future. Also, the decision to make money off the situation has helped to prevent the formation of an opposition block. China and Russia seldom get along, and merely by choosing to stay out of it, they are creating a neutral party in this situation. This is mostly an optics issue, but optics is more important to geo politics than people realize.

Let me get to the meat of the issue. Why did this war happen? Dictators are a dying species. Since Gaddafi died, dictators around the world have been becoming increasingly paranoid they will end up in his situation. Putin is an old man who views the world through the lense of 1970-90s Soviet Union intel officer. Telling Putin bad news is also a dangerous situation, so the FSB has been feeding him hopeful reports for decades. You combine all these factors together. You get a paranoid dictator hoping to regain the lost glory of the soviet union being fed bad intel on his nations capabilities, and the capabilities of the west/Ukraine.

Should India stay out of this for the reasons stated before? They don't have to, but it could be a good thing they are choosing to. It isn't an ideal situation for the West, and it could bite India in the ass if they also expect the west to support them the next time china tries to take more of their territory or water sources. On the other hand of the situation backing this dying species of dictators into a corner could be more dangerous than the current situation. All we can hope is that India is making this decision for the right reasons.