If I recall the rather convoluted nazi racial hierarchy correctly, they might at least decide that they're happy he's a real Aryan.
You're not wrong. I've actually researched the weirder corners of Nazi racial theory in an effort to understand how the SS justified to themselves having formations like the 450th Turkestanisches Battalion. There were at least two competing tendencies in that theory, one of which was the obvious Germano/Nordic vs. everybody else racialism, and the other being predicated on a distinction between "master" and "slave" races that was not so unipolar, and certainly more convenient when, e.g. dealing with the Japanese. Or recruiting Azeri Turkish POWs to fight the Soviets - you could qualify as "master race" if the Nazis judged your ancestors to be a sufficiently nasty and warlike tribe.
So yes, high-caste "Aryan" North Indians like this officer (and the Nazi-collaborating Indian nationalist Subhas Chandra Bose)
did qualify as "master race".
And here's some dark irony for you: running full-tilt away from every claim in Nazi racial mythology actually turned out to be a mistake. When I was a child and teenager, part of the postwar reaction against it was to bury the older term "Aryan" for Proto-Indo-Europeans and depict them as small, dark people looking nothing like modern Europeans and certainly nothing like a Waffen-SS recruiting poster, oh no perish
that thought.
For decades, Colin Renfrew's notion that Indo-European languages were brought into Europe by farmers gradually and almost peacefully displacing late-Neolithic hunter-gatherers was quite the respectable theory. When Marja Gimbutas tried to revive the "Kurgan hypothesis" - PIEs as violent steppe nomads sweeping west from the Pontic steppes to overrun Europe in less than a thousand years from first contact - she was harking back to the consensus way the archaeological evidence had been interpreted in the 1920s. After WWII nobody wanted to remember this, or that Herodotus had described the Pontic Greeks as blond and blue-eyed. And Gimbutas was embarrassing, anyway, because her later books flirted with feminist pagan mysticism.
Then we figured out how to sequence DNA from from human fossils, and oops. There's a signature pattern in certain haplotypes on sex-linked chromosomes that you can only get when a population C is the result of population A moving in on population B, killing all its men, and raping all its women. Once you have the fossils as a baseline, you can actually track the shock-front of the PIE invasion by the traces it left in the allele distribution of modern European populations. Furthermore we now know what the PIEs looked like to a fairly high degree of confidence; the genes for melanization and eye and hair color are pretty easy to pick out.
Gimbutas - and the Nazis - turned out to have been right after all; neolithic Europe really was put to the sword (er, more accurately, the axe) by ravening Aryan blond beasts. No actual credit to the Nazi theorists here because they didn't originate or really develop the Aryan-invasion hypothesis themselves, they just co-opted it. Still, it's an object lesson in the perils of disbelieving fact claims simply because they're advanced by evil people, and in how political revulsion can distort science.