The effect will depend on how big is the demand in India because demand will dictate whether it can impact the bitcoin price or not. Let's say that there are plenty of users in India but the investors are only few then it cannot affect that much to bitcoin price.

But if the demand in India is kind big then it can surely impact the bitcoin price in case the government of India will lift the ban on crypto currencies. It will be a good news also to the crypto lover if in case India will lift it's ban to crypto currencies.