No exchanges in India are current processing withdrawals and deposits in INR for any crypto related transactions. Localbitcoins is not that trustworthy and hence I prefer P2P transactions with users whom I have traded with for years and there are some reputed traders on bitcointalk as well in the Currency Exchange section. You can use escrow for safety.
I don't have any problem with localbitcoin other than the price of bitcoin but as you said P@P can be good and safe but the escrow fee may increase the expense more.