Point well taken, and completely valid!
Inaction due to economics doesn't carry the same moral weight as exploitative aggression. Failing to act is not morally equivalent to choosing to actively commit harm.
Colonial powers like Britain used military force to subjugate and extract, but our neutrality involves no direct harm to Ukraine, only a refusal to join Western sanctions. India has not been entirely passive. It has provided humanitarian aid to Ukraine, supported the Black Sea Grain Initiative to mitigate global food crises, and advocated for dialogue and diplomacy. Modi has told Putin that he did not agree with his war, and has consistently told Ukraine that India supports peace and Ukraine's territorial integrity.
For India's relationship with Russia that dates to the Cold War, with the Soviet Union providing critical support during the 1971 India-Pakistan war and vetoing anti-India UN resolutions on Kashmir. This history has led to a deep strategic partnership, with Russia supplying over 50% of India’s military hardware. Breaking this abruptly for moral posturing would compromise our defense capabilities especially given tensions with China and Pakistan. Aligning against Russia risks pushing it closer to China, which will destabilise the Indo-Pacific. Our neutrality is also about survival in a region with hostile neighbours and dependence on Russian arms.
If we sanctioned Russia we would face energy crises, military vulnerabilities, and a stronger China-Russia axis. Not good for the world, is it? To weaken India while making China stronger.