Knowing the current government and its foreign policy it is possible that data-sharing between the governments would be the primary way to get user data on CEX. Getting Indian user's data would be the primary motive as it does not make sense to ask CEX for user data. If someone wants to commit a crime they will always use a DEX to sweep their money. It is far more convenient for a criminal as they can hide their identity.
Monitoring the data from a DEX is also possible but this is India we are talking about and a lot of digital improvement is needed before such things can be shown daylight. We are in an era where the government is trying to make things digital while ignoring the amount of cybercrime happening. The foundation of a good digital infrastructure is the cybersecurity and cyber-awareness from the people.
Long way to go in my opinion, although what delights me is that at least India is taking part in crypto related talks, back when I first came to this forum, it was much less.