Considering how many scammers and shady projects had their roots in India I would be happy if their government bans cryptocurrencies at all. Most part of Indian crypto community is just a bunch of rednecks (there is a word that describes Indian ones but I forgot it) whose only activity is looking for different airdrops and clicking on faucets. Amount of their transactions is incredibly slow comparing it to the other countries, so most people don't really give a shit about what is happening there.
I partially agree with you. First I'm totally convinced that any regulations of crypto needs to clean the space from scammers and frauds to prevent people from losing their money investing in ponzi schemes. On the other hand governments should be more open to the new technologies such as crypto currency industry because it makes life easier in terms of payment methods and fees than the current dominant greedy banks