They're not giving Indian nukes, i know. But, with the assistance in the civilian program, Indian's military nuclear program will grow faster. Hence, in essence, it is helping India to proliferate.
This my exact point -- US can't tell the Israelis not to sell weapons to other countries diplomatically because it is willing to give India nuclear fuel which will eventually allow India to grow its own military nukes ata FASTER pace than before. How hypocritical would the US look if one hand, US gives to a nation that doesn't sign the NPT, and on the other hand, US tells Israel it can't sell to X,Y,Z countries? A hard sell.
Oh yeah, Israel, which also hasn't signed the NPT, didn't get the same treatment that the US gave to the Indians on nuclear fuel either.