They've plainly stated they want to regulate crypto currency, that is a step towards a ban. If they view crypto to be a threat (which any common sense government does), then they begin regulating the currency through convoluted tax law which makes no one want to use the currency.
If your left with high taxed crypto or traditional currency, no one will bother using crypto. And India has a poverty problem regardless, so there isn't any incentive for adoption. Adding in whatever regulations they can come up with will squash any crypto growth in India. Any crypto user should be against the regulation of crypto, it's one step before an outright ban.
That is a scenario that could come to happen, however governments are taking a risk as it is always possible that their regulations are ignored by the population.
So in the case the demand of bitcoin was high and the government passed a law to try to control this and diminish the interest of the population in bitcoin, the population may simply decide to ignore the law and deal with bitcoin as if there was no regulation in place, now for this to happen the demand and the interest in bitcoin will need to be very high, but I think we are slowly moving towards that direction, and when that happens no amount of regulation will be enough to stop people to adopt bitcoin.
If its mandated then it could be possibly be enforced and citizens wouldnt really be having no choice but to follow or else they wouldnt really able to access
some government services or something like that which its always been the main concern when it comes to this.
State issued will really just act like fiat itself and it would really be centralized which is already expected thats why i dont see the need for some
comparison because with just common sense you could able to determine on what it is all about.
Even if it is enforced civil disobedience is a thing, despite the fact that most of the time people will just follow whatever the politicians tells them to do, we know at the same time that the distrust in politicians and their actions is very high, so if a person has to pick between following a law that benefits the government and disobeying it while obtaining benefits for themselves in a way that does not damage anyone in any way or form then the chances they pick the latter option go way up.
This is what we have seen in the past with countries going through hyperinflation and the government demanding that the population hands them out their dollars and gold and the population resisting such measures, so it is easy to me to see this scenario happening with bitcoin as well.