Well, I like the Indian deal, and thus my question. If this proposal means killing deals to encourage peaceful uses of nuclear energy, it's unwise, and hostile to the planet for those who worry about the effects of the use of fossil fuels vis a vis terra firma.
I'm not necessarily opposed to the spread of peaceful uses of nuclear energy, nor does this measure necessarily inhibit same. It would though require India to become a party to the NPT before they could legally engage in transnational nuclear trade.
Will India signing the NPT put it at a disadvantage vis a vis Pakistan in their little nuke arms race?
The NPT is available for viewing
here. I believe the relevant sections that guide answering your question are Articles VI and X.
Article VI"
Each of the Parties to the Treaty undertakes to pursue negotiations in good faith on effective measures relating to cessation of the nuclear arms race at an early date and to nuclear disarmament, and on a treaty on general and complete disarmament under strict and effective international control."
Article VI is a subject of some disagreement between states as to just how much they are really committed to moving towards the goal of disarmament. Ultimately, the treaty doesn't appear (to me so farm, at any rate) to prohibit the continued production of further nuclear weaponry. Also for information, Article X offers the get out of jail free card, if necessary.
Article X"
1. Each Party shall in exercising its national sovereignty have the right to withdraw from the Treaty if it decides that extraordinary events, related to the subject matter of this Treaty, have jeopardized the supreme interests of its country. It shall give notice of such withdrawal to all other Parties to the Treaty and to the United Nations Security Council three months in advance. Such notice shall include a statement of the extraordinary events it regards as having jeopardized its supreme interests."
I'll also state that the official reason Pakistan give for not signing up to the NPT is that India haven't signed up. And so encouraging India into the club would leave Pakistan with much more limited political cover to remain outside.