There are 100s of 1000s of Indians who are applying for Canadian citizenship, but here's a case that has everything ready but is fine to deny the child their Canadian citizenship. Wouldn't it be simple to get the child a Canadian passport, get an OCI, and move back to India in your 3-4 years horizon? The child continues to live in India and enjoy all benefits that come with OCI and then when they turn 18, can take a call whether they want to stay Canadian or give it up and be OCI+voting rights+agricultural property.
Given the circumstances, if a British / Pakistani citizen, without any claim to Indian citizenship (Adnan Sami) can get Indian citizenship, anyone with Indian parents can.
The only problem that comes with an OCI card is the expense to give primary education in India. Usually the tuition fees would be 2x-3x or more for a OCI. If the child stays in Canada for just 3-4 years, is it really necessary to get a Canadian Passport for that timespan or an Indian passport can do the job also provided the child needs a valid passport for International travel?