The Indian government is currently deciding whether to regulate Bitcoin. Meanwhile, some Parliament members are working towards cracking down on illegal activities involving the digital currency.
Legitimate Bitcoin Businesses vs Pyramid Schemes
The governments efforts could be primarily aimed at pyramid schemes, rather than legitimate bitcoin exchanges and businesses.
As long as they target the right issues within their local Bitcoin economy then I don't really see an issue with it, even though I would prefer it if they didn't mess with the economy at all and let it act as a true free market.
I just hope they don't go nuts and start going after everything if/when they start designing their regulations. From what I remember there's a fair amount of Bitcoin in India now so it's not going to be great for a sizeable number of people if they don't take special cases into account and just seek blanket restrictions.