I do not think that any government can really ban an internet site or application or Bitcoin trading or mining since there is a lot of companies that provide good VPNs or VPSs and some people rent their laptops or computers and you can use them via TeamViewer so you can hide your IP.
The only way that the government can find you is if you are mining and you have a high electrical consumption the electrical company can detect that. So I would not worry about any government ban unless I start to mine.
The government can and has banned internet sites in India. The most recent case is the BAN of all porn sites. I'm not a 100% sure but I guess around 800 porn sites have been banned in India and network providers like Airtel, Jio, BSNL etc. are now complying with this new BAN.
As far as bitcoin goes. I think that if the government of India does BAN it then they know that the country will start to use bitcoin in illegal activities. The last thing a country like India needs is an increase in corruption. Maybe the country is backward but as far as I can tell it may be able to realize it's mistakes and well we can only hope for improvements.