This is not a good idea. The technology transfer would give a very good insight into how we package, maintain, and utilize our VLS.
Once a government has that type of technology, it will be capable of developing systems on par with our own.
Frankly,it’s not a big deal.France,Russia among others have all developed or are developing VLS systems capable of launching multiple types of weapons & both have stronger ties to the Indian military than the US.The reason why LM is proposing this is because both India & Israel are co-developing a new SAM system called the ‘Barak-NG’.Rather than devloping a brand new VLS system,both countries could well opt for a modified MK-41.