Understandable really, the Indian cricket board can't afford to lose the revenue that they would earn if playing a test series or one day series or even not playing at all, whereas with the ICC trophy which they host this year they lose out big time.
Yeah, I also saw down the bottom another dispute with the BCCI about future tours. I think teams should be able to arrange their own agendas but the ICC could step in if they were getting ridiculous e.g. only playing one team all the time.
England and India seem set to go against the ICC long term plan thingy with plans to play each other home and away every 4 years, the ICC wants team to play each other every 5 years with the possibility of extending it to 6 when the next long term plan is confirmed.