This isn’t just India’s stance. It’s a loophole that was more than likely intentional.

One of the key points of this strategy is that we can’t afford for ~10 million barrels of Russian oil to leave the market without serious consequences. On top of that much of Russia’s oil would likely be shut down for years if they have to turn off production. This would result in substantial rises in energy costs, huge energy shortages in many developing countries, massive supply chain disruptions and, possibly most importantly, would likely drive a huge wedge into the coalition that is supporting Ukraine.

I don’t know if this is the best option available, but there are so many consequences to just shutting them out that I don’t think that’s the best option either.