The strategy used is very simple. First destroy the competition and then rollout their own product and capture the monopoly. Take the case of the telecom sector. Established brands such as Idea and Airtel were destroyed before Ambani came up with his Jio brand. And how can they let cryptocurrency out of their control? Since it is impossible to control a decentralized asset such as Bitcoin, they have decided to ban it. Once the vacuum is created, the pro-government corporates will come up with their own version of the cryptocurrency (which will obviously be 100% pre-mined).
It so amazed sometimes the behaviour of some government towards the citizens that elected them into the office and with the above information you point out I believe the current Indian government are following the same strategy used by the Chinese government before they create their own Central Bank Digital Currency but it a shame that their decision will only affect the development of the country because there's a lot blockchain Dev from India.
With that been said, due to all this issue, the recent list of countries in the world that are communist which India was excluded is totally wrong and they need to be include.
Government and their selfish habit.