This is just like when Galliano got raked over the coals for doing a collection inspired by the homeless. People, and mind you not the people being depicted but journalists and advocates who aren't living on the streets, were so offended because it was insensitive. Poverty exists all over the world and the main reason people get so worked up about something like this is because it's painful to be reminded of that fact. Everyone knows it, but no one wants to see it.
No one has a problem when fashion adapts the sari into a $2,500 gown, or takes a tiered gypsy skirt and does it in swarovski beaded silk. Everyone can ignore the fact that the clothes are representative of people who live a life of poverty if you dress models in native clothing and photograph them in a real setting. So why is it offensive to portray the actual people instead of an unrealistic fantasy?
I think these people should be proud of the fact that a publication as influential as Vogue decided not to glamourize India but instead saw something beautiful in the reality of India.
And just to clarify, I'm not some super-benevolent activist preaching from my soap box. I'm just as guilty as the next person of passing by homeless people on the streets and making an effort not to see it because it's an uncomfortable reality. That's probably why I appreciate what Vogue India has done.