Initially India's position was politically not favorable to Israel. India was against Pakistan's creation for the same reason. Dividing countries by religion will only cause more conflict in the future. Especially the Pro Arab congress government post world war 2 wanted to balance peace in the region and not have Palestinians pushed out.

But that has drastically changed over the years with recognition and good co-operation in what has become a fight against religious terrorism. While politically India still supports Palestinian cause, it has become more pragmatic and less idealistic in its foreign policy. Not abandoning Palestinians at the same time grow it's co-operation with Israel.