Yes, that is the excess fuel cam for starting. It should pivot freely on the pin and limit the rack movement when left to it's free state which is a shown in your picture. Before cranking your engine and after your flip the fueling lever down you rotate the excess fuel cam downward which allows the governor to pull the pump to full rack. When the engine comes up to speed and the governor closes the rack the cam should rotate on it's own weight back to the position shown and thus limit rack travel for operation.
Another Indian simplification that may be one of the reasons we read about so many Indian clone crankshaft failures??? We have run the CS and clones under varying loads both with and without the limiters and let me tell you the 6HP CS is a LOT different acting engine when the rack is properly limited than when it is not.
Butch