If Indian government makes bitcoin legal by issuing an official circular, it will benefit the market and bring in huge cheer in to the market pushing the price to the next level. Indians are pretty much active in this sector but most of them are doing it secretly because of the current unclear legal status. Legalizing bitcoin and other crypto currencies in India, will have dual effect. It will benefit the government as more people will come forward and declare their earnings in the tax information sheet to pay taxes. Secondly, market will see an inflow of Indian traders and a rush for buying. It is mutually beneficial.

But I am little skeptical about gambling. Goa is the only state where gambling is legal. I heard that Maharashtra is planning to legalize gambling which will be controlled by the state government. But gambling is still portrayed in a negative way in India. So unsure about its end. But crypto currencies will have to be legalize because government doesn't have any way to stop it. If they ban it, it will still be used by many Indians, but just the government will not get their share of the cake.