You guys need to understand what exactly cryptocurrency made for, besiding using it for profit and turning them into fiat, it's a bad idea. but still there are few p2p exchanges which you can use to deposit and withdraw.
I very well know whats the purpose of cryptocurrencies. You should understand one thing that you cant use crypto instead of money in India. So you need to convert it if you want to use in India.
You are right Indian Govt clearly stated that Cryptocurrencies are not legal tender in India and its not at all accepted as payment in any online or offline shops.so you have no choose if you want to spend your Btc earning you need to change them into indian rupees.