The Indian government is interested in Blockchain, and expressly rules out Cryptocurrency. Also, since it runs on tax-payers' money, they want nothing to do with established crypto, especially Ethereum, because that only profits a few "others".

Perhaps they might clone Ethereum, and run it as their own Blockchain; or there might be a permissioned Blockchain like IBM Hyperledger that doesn't need any Cryptocurrency, and where access is restricted.

Already there are tensions between the Government and the RBI over monetary policy, etc with emphasis on total centralisation. To expect them to be welcoming toward decentralised, libertarian (anti-national?!) stuff such as Bitcoin and Cryptocurrency is a delusion.

It's not gonna happen at least over the next decade if not more.  Consider yourself lucky if your possessions of Bitcoin and other Cryptocurrency are not deemed a  criminal offence.