China is the big brother in the Asia region now, soon they will be the big brother of the world. Everyone wants to work with China for economic benefits, so does India. India is predicted to be the next most powerful economy in Asia if they work closely with China, they will be able to achieve that very soon.
There is no benefits to be associated with the CTA and the Dalai Lama. Giving support to the CTA or the Dalai Lama will jeopardise the relationship with China. When a country is not associated with the CTA, China will be very willing to help and work with t hem. For example, Nepal, after they have disassociated themselves with the CTA and the Dalai Lama, China injected a lot of funds in Nepal to help them to develop their country.
When someone is associated with the CTA, they will have to give something to the CTA, the CTA does not have anything to give them. They have been a beggar for the past 60 years who only takes, what do they have to give? India experiences that first hand and they don't want to be used anymore. Sending the Dalai Lama back to Tibet is a wise decision. If they manage to do that, their relationship with China will improve immediately and it will help their economy to grow.