Q1) What could be the future of Indian Crypto Traders and Investors
The raid on exchanges is not a raid on crypto traders and investors, so as long as they hold, another means through which they can trade will still come up in the future, and besides, there are other international exchanges they can switch to, like binance and the rest.
Q2) Are all these exchanges involved in Money Laundering or some kind of illicit Activities
Personally, I wouldn't know, but I think for the fact that bitcoin is not legal in India, is enough justification for the raid.
Q3) They are providing instant loan from their liquidation which is ultimately people's money
Investors are always the ones that loss more in situations like this, that is one thing that pains me to my bones each time I hear stuffs like this.
Q4) Does these exchanges working without any license or legal approvals
Like I said before, since bitcoin is banned in India, it is certain that this exchanges are operating without license and legal backing or approval.
Q5) Are other existing exchanges fall under the same category
"No" is the answer, there are several other exchanges that are not operating under or within the Indian territory, such exchanges does not fall under the same category with those that are raided.
Q6) Is it the time for people to switch to peer to peer
For bitcoin to be transacted through peer to peer was the main vision of satoshi Nakamoto when he developed bitcoin, maybe it is time to switch to peer to peer, but I doubt how effective this is going to be.