However, I'm surprised that the Indian government decided to raise this issue again after they have supported bitcoin because India is also kind of centralized country but crypto related company CEO are already fighting against the new bill.
I am following cryptocurrency news globally and i have not heard about the Indian government in support of the bitcoin market and i think they banned the exchanges from conducting business by restricting the banks in dealing with them and the supreme court came up with a verdict that helps the exchanges after a long battle and not the government and with that being the case i wont be surprised if the government tries to ban the market altogether.
Youre right about Indian government restricted the banks from working with anything that have to do crypto and later banned bitcoin trading but saying they didnt ban cryptocurrency (bitcoin) then is a lie cause they jailed caught in physical trading.
With that been said, the india government dont clearly say they legalize bitcoin but in a situation when government allow the institutions to work with crypto exchange we still say they support crypto market.