First of all, India should not accept any conditions to be attached by NSG. period. The govt. should make it clear that it will walk away from the deal if a clear/clean exemption is not granted.
Secondly, the govt. should be willing to do that i.e. walk away from the deal if conditions are imposed.
Thirdly, India should not take kindly to these small lilliputian nations raising "concerns" and "objections" at the NSG. India should retaliate diplomatically/through trade in a subtle but firm manner. There should be economic consequencies for countries which oppose India's progress.
Kimball dude is getting way too much press. Not sure he deserves it.