Before I answer the question, it is essential to understand that countries can be 'allies' on specific issues

but that doesn't imply the alliance is uni layered and that they will adopt the same line of interest on all
issues. Geopolitics is always dictated by what's beneficial to a country. Moreover, India does not have a
dog in this fight that would compel it to choose a side.

Some of the reasons India would choose to remain neutral and refuse to toe the West's line of thinking
are as follows:

1. Iran is majority Shia, and thus, has always regarded neighbouring Pakistan (which is majority Sunni) as
a hostile nation. This allowed Indian diplomats to make inroads into the Iranian administration. Good
relations between India and Iran (as well as Afghanistan) allow them to isolate Pakistan across all its
borders diplomatically. Also, in the event of war breaking out in the region (highly unlikely), India can
use its goodwill with the Afghan and Iranian governments to squeeze international supply routes into
Pakistan.

2. Iran is among the world's largest suppliers of oil and natural gas. With emission norms being made
stricter across the world, natural gas, which is cleaner than gasoline, stands to become more important
as a fossil fuel. Moreover, all public transport in larger Indian cities increasingly runs on compressed
natural gas making it an invaluable source of fuel. India and Iran have been in talks for a while about a
gas pipeline connecting both countries transiting Pakistan. All these make Iran an indispensable fuel
supplier for India. Besides, several Indian states are going to elections this month and the parliamentary
elections take place next year. With increasing protests in India over inflation, any government hoping
for re-election will be wary of committing towards any international action that would drive fuel prices
upwards.

3. In 1998, when India tested its own nuclear weapons, the Clinton administration imposed sanctions on
India eventually making it a nuclear-pariah. These sanctions had no effect on the Indian economy but
did make the political administration rather angry. Fast forward 10 years and the Bush administration
went to the extent of modifying US law just to be able to sign a nuclear deal with India. Given this
history, India is wary of any attempts by the West to dictate who should or shouldn't have nukes
especially since these countries possess nukes themselves and have not shown similar enthusiasm
towards getting Israel to shed its nukes.

4. The United States and the EU have imposed sanctions on Iran's nuclear program claiming that its an
unstable state with a rogue administration. However, astonishingly, the same governments of the West

have never imposed any similar pressure on a much-more-unstable and nuclear Pakistan (the US
remains one of Pakistan's largest military aid donors and has routinely sold defence equipment to that
country). The West did not raise an eyebrow when A.Q.Khan, the mastermind of Pakistan's nuclear
program walked scot-free in 2009 despite knowing of his close links with the North Korean
administration.
Given this, it would be rather hard to convince New Delhi to vote in line with Western concerns
especially since the West doesn't quite regard Indian concerns with a similar seriousness.

5. Economic sanctions do nothing to get a rogue administration to change its plans. All they do is push
the country further into poverty and make life miserable for its ordinary citizens (e.g. Cuba, Iraq,
Myanmar etc.). Moreover, sanctions in this case might seem to some as a prelude to a full-scale
invasion. Indian policy in the region has always been skewed towards rebuilding and reconstruction
rather than military-aided regime-change. For instance, India chose not to participate in operation
Enduring Freedom but post-war became one of the largest aid donors and participants in rebuilding
Afghanistan.

Given these primarily economic as well as some ideological concerns, India will be wary of throwing its
weight behind the West in imposing sanctions on Iran. The Indian administration has consistently
advocated dialogue and negotiations in the case of Iran and going by recent news reports, continues to
do so.

Israel is a natural ally of India's as both are countries that have been victims of terrorism. Besides, Israel
is also a vendor of sophisticated military technology to India making it a very important ally. Iran,
similarly, is an important supplier of fuel and also tends to vote in India's favour or side with the country
on numerous international issues. Therefore, both countries are rather important for Indian interests
and given all this, it is prudent for India to stay neutral rather than support either nation.