India is actually on the 5 place in the world by GDP, and there is no doubt that it is progressing strongly in economic terms. There is a huge difference between rich and poor, but this is also the case in some other countries. Although the level of poor decreases in India, poverty is still 15%, but it significantly decreased in last 15 years (42% in 2005).

What was the exact cause that India does not want or can not regulated cryptocurrency for the benefit of its citizens, and therefore for their own benefit is a big question. In any case it is not good that biggest countries in the world like China and India have very negative attitudes toward cryptocurrency. My opinion is that main reason for such behavior may be in the strong desire to keep people in some way under control of the state. Bitcoin is just something that does not fit in the way they want to lead their countries.