India will not and should not be worried about the perception of cowardice from other parties. This will be the least of India's concern.
Looking at the pictures released by PLA, I thought that the Chinese were better equipped even for that non-lethal shove/push match. Indian side was simply throwing stones, while Chinese had proper shields and other gear. If reports are to be believed, then Indian troops in that area were also not well fed and sheltered last year. I do not have the tactical details of the confrontation, so I cannot comment about why the scenario panned out the way it did. Regardless, India will strive to keep the confrontation non-lethal for as long as possible.
Eventually, the Chinese will have to escalate to make significant progress. At that time, India will (or rather should IMO) confront China the best way it can. It could very well be that China will take territory, as is often the case when a superior military force confronts a relatively inferior force. But it is also likely that India will make China pay for its prize; that could and should help China's more superior enemies
There were no 'ifs' and 'buts' in my opinion.