I read about living conditions in the OP, that's what I have a problem with. These people can opt for citizenship for any country they wish, that is a privelage extended to them by the UN Charter of Human Rights, as long as GoI agrees, I don't see why it has to be a problem. It's the reference to living conditions that upsets me, you're only going to live as good a life as you work for, take my friend for example, he's a Dalit Hindu living is Islamabad and runs the largest antiquities business in Pakistan. His father, migrated from interior Sindh and started off as a carpet dealer in a rented out shop. Gradually he saved and started dealing in antiquities. Now the're rolling in billions. Point being that if these people lacked the resolve to improve their living standards here, they probably won't do a better job in India.
Good Luck to them, none the less.