Coming from Jain background, again I can see why it is so important to Jain people (who do not have their own country since the unification of India - which was done by the Brits) to have a place to call their own, free of the slaughter of animals which is tremendously wrong to them. My mother would try to avoid stepping on bugs as a child and did not eat any root vegetables because she and her family don't believe they should kill any living thing on earth. The fact that others think this is ridiculous feels like persecution to them for their religious and moral beliefs.
India is a hodgepodge of cultures, languages, religions, and people because of the unification of the country by the Brits, and part of being in India is this struggle to maintain each culture (and the attempt to make everyone happy) so that the country doesn't break apart into more pieces (Pakistan and Bangladesh being the first pieces to break off). If the Jain people want to establish rules that create a safe space for them in their own holy city, just as Hindus living in Pakistan would not be allowed to cook, serve, or eat pork, for instance, or anyone living in a Muslim country may need to cover their hair even if that is not their religion or belief, I really think they should be able to do that. Whether it is some 100 yard radius or the whole town, that is up for debate.