What i am expressing here is just my opinion, based on whatever knowledge i could gain through various sources.To answer it , one should be aware of the actual ground situation over there.
Anyways, as per me India has no business in Iraq right now.Unlike Bangladesh where people were overwhelmingly against a certain regime,in Iraq it is just chaos ,if people does not like isis then they don't like the present ruling government either. If any foreign government take action against isis ,it would be attached to the present Iraqi government and all the ills of the the Iraqi government would be attached to that country whoever support that government .It is a sectarian,bad governance,violent chaos over there,to put your hands inside that chaos, you are most likely to burn your hands.There is nothing to gain fighting ISIS over there strategically for India.So India should stay away.
Having said all this,if one decide to keep aside strategic interest and want to act just for the sake of humanity.Be it any country including India,should take lead and propose in united nations to help setup a safe zone inside Iraq,most probably the kurdistan region.Which will be defended by UN under the leadership and majority of resources ,troops of India.What that safe zone will offer would be protection to all the people from Iraq,from all sect and religion who want to escape horror of war,execution,hunger etc.Inside that safe zone we should offer relief in form of food ,water,medical help,shelter,protection.We should declare that we will not be involved in conflict or take any side we are there only to protect innocent people from the horror of war.But if that safe zone is attacked by any party (isis/or others) strict offensive action will be taken to ensure protection of safe zone.I think this is the best way to project power and gain goodwill without indulging in the mess over there.