I'd posted my comments on this via the website but I'll add a couple of thoughts here.
There are a set of criteria for creating an NIR. If the Indian application meets those criteria then it should proceed. I don't believe they have to justify their existence in the way a number of people on this list seem to think.
If that causes problems for APNIC because of changes in funding then that's not a reason for the application to be rejected - there's nothing in the policy that allows for that.