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> So India could "fix" this by signing on to the treaty and agreeing to the restrictions. They choose not to it seems (I have no idea why)

Indians are fiercely proud of their space program, which is in opinion a wonderful feat in terms of technology. Their main objective is to use it for Indian interests, like Oceans, weather and defence etc. They've no interest in pursuing extra business, if it comes at the cost of bowing down to US stipulations. They're getting nice business from many countries in the world like Germany, France, African nations etc.

Source : I've read "Wings of fire" by APJ Kalam, which gives an interesting insiders view into ISRO/DRDO.