Parents have ILR, can baby avoid being British

[vinny]

Renunciation is different.

An ILE/ILR holder is not British and is subject to the returning residents provisions.

See also Are you a minor, Indian by descent and also foreign citizen?

[rrp]

Thanks a lot Dear Moderator. The information is very useful. As per the other link the process to obtain Indian passport is :
apply for Indian citizenship -> Indian passport -> certificate of entitlement (CoE) to right of abode (RoA) from UKBA.

Does this mean the child will be British and Indian at the same time? If this is true then I don't know how pratcically this is going to work as Indian system does not allow dual citizenship.

Does the child need to choose only one citizen when the child turns 18 years?

[ban.s]

I don't know how Indian authorities enforce section 8(2) but if one of the parents apply for naturalisation later and become British citizen then the child will also cease to be Indian.