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The two longstanding foes had been heading towards direct confrontation since a presumed Israeli airstrike on April 1.
Authorities said a 7-year-old girl was critically injured.
Chanting "elections now", protesters called for Netanyahu's resignation.
Besides India, 12 other nations, including Japan and France also abstained from voting on the resolution
Israel had said it was interested only in a temporary truce to free hostages. Hamas has said it will let them go only as part of a deal to permanently end the war.
The Israeli military said it had killed and detained hundreds of gunmen in clashes in the area of the hospital.
"Starvation is used as a weapon of war. Israel is provoking famine," said the EU.
Nibin Maxwell, 30, from Kollam in Kerala, was killed in the attack.
US negotiators had been pushing hard to get a pause-for-hostages deal by Ramadan's beginning on March 10 and top US officials were working on the issue last week..
Israeli delegates met on Friday in Paris with Qatari, Egyptian and US mediators who helped put together the lone ceasefire so far, in November 2023