Actually I'm not exactly sure why this argument always boils down to nuclear arsenal when that isn't the real motivator here in the first place.
Let's be honest, this "deal" is being offered to India now only because there are massive potential economic gains for the west, particularly the USA. If India hadn't been performing well economically for almost two decades no such offer would have ever surfaced. Similarly, India's first and foremost desire is energy, something their foreign policy has otherwise been unable procure effectively so far, resulting in a bottleneck for their burgeoning but otherwise burly industrial complex.
With a greater energy availability the Indian industries are bound to stupendously increase their productivity, further bolstering the rising middle class consumer culture... all of which of course will be a bonanza for the west.
This is one of the reason I find the the indignant displays over biased treatment by Pakistan propelling the "we want one too" demands vacuous. For a number of complex reasons, in the regards to stability and economic development, Pakistan and India haven't been alike, and the world at large is well aware of this. Subsequently this isn't an issue of treating a Muslim nation unfairly as it is making an investment for the maximum gains. Granted Pakistan's instability and proliferation records don't help the matter, but at the end of the day, breaching protocol and availing nuclear energy to Pakistan hasn't nearly as much economic benefit as it is for India at this point in time.