It isn't a big question because the media has already shown us why crypto is not legalized or regulated yet in the country.

Many months back the RBI issued a case against cryptocurrencies in the Supreme court of India. It said that cryptocurrencies encourage money laundering and since then the case is 'still' going on.
The court has been pushing the dates to make the final judgement. To be clear, India is against cryptocurrencies but not the blockchain technology as many companies have started using the blockchain technology already.
I guess India will only come to realize that it should regulate cryptocurrencies when all the other countries start to regulate cryptocurrencies.