Both India and Spaceflight Industries agree that they won't launch anything from the US without a US license. This is a company that lied to everyone involved.
As the article points out, satellite operators are free to choose which nation's regulatory regime they launch under, but they do have to pick one.
If India freely made an agreement with the US to only launch FCC approved US satellites by US operators, that's India's choice. As it happens India didn't actually grant them a license to launch either, they just lied about having a US license, so technically they're probably in violation of Indian law as well or at least in breach of contract.