Most countries that need oil from the Middle-East have been doing this tight-rope walk for the past 50 years. Be it the plight of their citizens, treatment of migrants in the GCC, relentless hostility against Israel, and now sponsoring ideological trouble for the whole world.
India is no different. Its inability to tell the Arab World off on its record is due to both its dependence on their oil, as well as wariness of a pan-Islamic front backing Pakistan. So diplomatically, I think India will always try and balance the optics. After all, these protests are not the official Indian government statement.
As for ISIS, yes, anyone who has an annual subscription of Dabiq or is part of numerous FB groups can opt in. They have never been shy of stating what they believe, and can cute more substance from Islamic doctrine than those who state that they are not real Muslims.
Obfuscation only serves to strengthen their hand. The more governments avoid the debate, greater the number of youth who will fall for their indoctrination. And the franchise model works great for them. It is much better than what Al Qaeda could manage. In fact their ex post facto licensing model is a management innovation that should be studied in business school.