This is a win-win situation. India can proceed with the peaceful uses of nuclear energy, build more reactor, more nuclear power stations and get sufficient fuel from us and australia. It can delink its military programme, continue its nuclear weapon programme independently, without transferring material resources, but technology transfer may be possible. India has nothing to gain by exploding nuclear devices.
There are international safeguards regarding nuclear cooperation. What do we gain by banning IT; many countries including china will welcome it. We will be double losers.