Yabu. Religion is very personal, and to expect someone to embrace your religion which they A, may know nothing about, and B, may not agree with is unreasonable.
When you enter into a relationship with someone who is of a different faith than you then you do IMO owe it to them to embrace their religion and acknowledge the celebrations which come with that, e.g. you acknowledging your dh’s need to celebrate Christmas and his acknowledgement of your faith and need to celebrate dewali. A mixed cultural relationship can only work if each is accepting and embracing of the other’s beliefs, even if they do not share them there is at least a need to acknowledge them.
However the extended family do not choose to enter into a relationship with someone who is of such a different faith to them, and while I agree that they should be respectful of the fact that your beliefs are different to theirs, I do not agree that they should enter into your religious celebrations. Those celebrations/holidays are personal to that religion, and if they do not believe in or accept that religion then that should be their choice.
While your hosting Christmas for your ILs may seem wrong to you by contrast, what you need to remember is that you are hosting Christmas for your dh, and that his family come as part of that. It’s no different to you expecting your dh to be a part of dewali for your family, or indeed to have been a part of your traditional Indian wedding, because he is your dh and has made a conscious choice to marry you, iyswim.
And whoever said that rejecting someone’s religion makes them a racist is being ridiculous. Plenty of people don’t agree with religion, even the religion they have grown up in. Chooseing to follow a particular religion is and should always be a choice not an expectation.