I don't think its China that's giving India the reverse sign in bonus, Myanmar is destabilized by the west remember. China wants a stable Myanmar for oil pipelines, I don't think China is actually providing arms that eventually flow to India. However, China can easily make life a living hell for India in its northeast.India had it's chance to shore up its stability through the SCO. I guess China is giving India a little reverse signing bonus through the porous Myanmar border, payment for persistent childish behavior in the SCO meetings. But India is the only major responsible one here, for promoting superstition and nationalism instead of honesty and hard work.
Actions have consequences.
America cannot help India censor forever. Sooner or later, the shit will spill out.
If India can't be used against the west, it's better to let them fall into a permanent lost generation through uncontrolled ethnic strife, corruption and crime.