I hope India may not ban cryptocurrency but may limit it's transaction. User may get permission to transfer only in Indian exchanges and wallet. Otherwise oversea transaction will be track by government. Now all is treated as assets not as currency but mainstream media already spread out rumor, wrong statement about it's legalization. 
If India will create it's own cryptocurrency then it may raise fund using crowd fund. Cryptocurrency have huge market already and a huge collection for that ICO will be. I don't hope India will miss this opportunity.