Exchanges still are not going to shut down as only INR withdrawals and deposits have been shut down. Exchanges have found their way out by introducing crypto to crypto trading pairs. This will remove the use of INR from trading but yes this is a great problem for sure. Moreover these are obvious signs that government is not ready to welcome this great technology any time soon into the Indian markets. Don't know why India is going absolutely in a separate direction from rest of the world.
Why do you need Indian exchanges to trade between crypto pairs? You can easily do it on international exchanges like Binance and Bittrex. You will have far greater liquidity on international exchanges!
Buying bitcoins for Indian fiat is difficult in international exchanges is difficult because of capital control laws. Indian exchanges used to fill that niche.
Maybe they are just trusted their exchange rather than the international exchange, if in India they are not allowed to do cryptocurrency anymore then it would really create a big loss in the world of crptocurreny as Indians are one of the active promoters of cryptos, hope that it won't totally banned.
Even such ban if you are really serious on buying up crypto there are lots of ways even exchange is totally banned or prohibited. indian currency can be converted into other currency and use up international 3rd party which being used to purchase crypto. People might really be scared but if you really mean to engage with it then its possible.
This banning news adds up again on the struggle of potential adaption of cryptocurrency on any place.