Here's a thought: if India makes its own cryptocurrency, it'll make cryptocurrency period much more popular.
This precedent might not carry, but that's what happened to Wall Street after World War 1. Before WW1, Wall Street was essentially a sideshow. Very few "Joe Average" types wanted to have anything to do with it. Amongst the average-Joe circuit, Wall Street had a reputation of a crook's carnival.
Then came WWI - and War Bonds. Lots of folks who formerly had nothing to do with securities bought war bonds for patriotic motives. Once in, lots of them became far more open to buying other types of bonds - and some got interested in stocks.
I really have no idea about WW1 and war related stuffs but what you said about the situation of Wall Street looks pretty similar to that of Cryptocurrencies right now.
That being said I am ok with Indian Government creating their own Cryptocurrency but I don't want that currency to be Fiat based as it will lead to further Inflation of our Currency.