A lame excuse. Answer of it lies in present time. Aren't we maintaing cordial relationship with Arabs and Israel simultaneously at present time? If it can be done now the it was also possible in the past.India's cold shouldering Israel during cold War years, had more do with the energy politics, need to appease oil rich Arab gulf countries, who incidentally were also the major source of income for millions of NRI's. Besides we were no not the only ones turning charm offensive against the gulf States. UK has no sizeable Muslim population like us, but who will forget the guard of honor accorded to king Faisal, where the Sandhurst educated officer leading the ceremony, blurted out commands in chaste Arabic (The Times wondered why the whole royal family was not asked to learn Arabic for the royal banquet)
Foreign policy regarding Israel had something to do with how Indian national congress viewed the question of Jewish homeland for the European Jews. Ever since the Balfour declaration proposed a home for Europe's Jews in the middle east, indian leaders declared it as a British colonial enterprise, similar to Britain's favorable treatment to demand for a homeland for Indian Muslims.
P:S - talking about Hindu traits, Hindus of Tamil Nadu not vigorously agitated for a Tamil elam in Lanka, but actively participated in the struggle for a Hindu dominated Tamil elam to be carved out of a buddhist dominated Sri Lanka.
One more point the leadership of Arab countries is simply money minded. That is why they continued to maintain close realations with USA despite it being the biggest supporter of Israel while they could have easily sided with USSR which was hostile towards Israel.
And as far as European countries are concerned then I would say that they are extremely conservative society and have deep loathing towards Jews. That is why they still oppose Israel.
Yes I do agree Tamils supported LTTE but they supported them on the ground of linguistic similarity not on the ground of Dharma. That is why no one other than them supported LTTE in our country on the contrary people still appreciate the decision of Rajiv Gandhi to send Army for fighting LTTE.