Maybe they're just more in tune with parts of their past history -- a quick look at some Indian temples and arts shows not all Indians were ashamed of their bodies or sexuality in the past.
Hey! To begin with.. I'm an Indian and I am an exhibitionist (or at least I think I am). I like and want to be naked outdoors and I wouldn't mind if someone watches me but the only reason I keep it low is because I'm not sure how my neighbours will act over my unusual and surprising (for them) activity. As you mentioned, Indians are culture conservatives, most of them, but what I reckon is, this has nothing to do with one's culture and that's what people don't understand (especially in my country). This is about being free-spirited and open-minded and accepting people for who they are.
Yes, one must keep it low and personal because not everyone is comfortable watching you in your hard/wet mode. They say there are kids around. So, that's okay, but they should stop judging people over this.
Indian culture is vast, diverse and amazing but I hate it when it preaches and so does any culture, in that case. Let people be free and live peacefully with themselves and pupils around.
P.S. Well, that ended up quite long!
I feel Nudism set u free. Rest all is nonsense. :)