In retrospect, a multiethnic nation committed to the ideals of liberal democracy would have been a perfect ally for the US in Asia. If Nehru was just a bit less idealistic how do you think an Indo-American alliance starting in the 1950s could have played out.
In some ways I think 1980s India might have taken the position that China did in the 90's, that of factory to the world. An India more open to foreign investment (coupled with American aid) might well have been played up as the new Arsenal of Democracy in the late Cold War.
I was thinking about this for awhile from the perspective of a gearwhore, and looking up alot of the stuff that India acquired and why it acquired it.
India's got this amazingly eclectic bunch of equipment: even up to the mid-90s, it was operating French Mirage 2000s, British Jaguars, and Soviet MiG 27s. (The last two were designed for the same job, oddly enough)
The one thing that jumps out here, of course, is that America could fill the shoes where the Soviets did. Those MiG-21s which were purchased in the 1960s and 70s may have become Phantoms, especially since Pakistan would probably be trying to get everything it could from China. The American defense industry would love that, as it would end up increasing the production run of what was already the most widely produced American fighter of the Cold War.
The tanks are another matter entirely. Even until very recently, the Main Battle Tanks in the Indian Army were British: the Centurion, and then the famous Vijayanta. What Vickers offered India in the Vijayanta deal is something that I can't see America being willing to match, so I think that that would be safely in British hands.
From what I can dig up, there seems to be this tendency on the part of the Indian military to find a system that works and stick with it, so there might also be Hunters in the arsenal for a long time as well. And if Hawker has a place in the Indian Air Force, then one can hope that the Ajeet will as well.
What does seem to keep popping into mind, though, is the carrier question: an Indian Air Force based around the F-4D or J instead of the MiG-21bis (as they would later move to) puts them in an interesting position around...the late 70s. Britain will be decommissioning the Ark Royal, a carrier that the Royal Navy (just barely) operated Phantoms off of for a number of years.
With a choice between taking on a completely new aircraft along with a carrier (buying the Hermes as the Indian Navy did) or buying the existing carrier and operating an aircraft type that they're already used to, they may want to go with the Ark Royal.
Just some thoughts I had.