I'm not sure she actually is a writer, I think her point is much less the problems she personally would face getting published and more the fact that these problems act to stop there being many indian writers in general, which means that as reader her options are incredibly limited.

I'm really not keen on the idea that the possibility for fictional portrayals giving someone, or some group offence...(is) necessarily worth thinking about beyond the requirement that an artist take some moral responsibility for the social impact of a work of art

I think I must be misunderstanding your point or you mine, because the moral responsibility for the social impact of a work of art is exactly why I think people should worry about this sort of thing.