You say that bitcoin is illegal in your country and also altcoins are illegal, yes?
I think that creating a cryptocurrency isn't an illegal thing and you won't be arrested but what about to use VPN at the same time? There is much illegal things and people are doing that but no one is arrested.
And while you are going to make cryptocurrency, are you doing it alone or do you have a team? Can you develope and make a known cryptocurrency?
Op never said that bitcoin is illegal in India, you are confused. All he said that it belongs unregulated grey area - as in most countries at this moment.
As for people who say that ban of altcoins or bitcoin can be introduced I doubt that happen, after all I like to think that: Lex retro not agit.
Even if creation of altcoin is perfectly fine in most locations, it is cheap and requires very little effort - I would advise against creation of new amateurish alts - it is a dead end in almost every case.