You're applying Western, Judeo-Christian, logic and morality to an alien situation. I don't think India wants to see millions of Indians die, but if they have to, they have to...as long as India wins and there is still an India after all is said and done.
The fact that millions of Americans and Russians would have died in the Cuban Missile Crisis may have been enough to cause Kennedy and Kruschev to back off. That's not going to happen with Mush and Vajpayee...they see the world in a completely different manner.