This doesn't just concern binance but all custodial exchanges IMO as there's always a chance your local government could put exchanges (or crypto in general) in a strict regulatory pressure/framework.
So yes, if you're a custodial exchange user, you should always be worried and follow commonly advised precautionary measures such as not treating any custodial service as a means of long term storage, keeping up to date with relevant crypto news as well as your go-to-platforms.
This is really a horrible news for Indian crypto users. Binance was the most popular one, but it is exiting with others, so Indian users need to use DEX or other available CEXs. And I think Bitget, Bybit, and others are still available to use, so they can use those CEXs to carry on their crypto journey.