I don't think so, they are trying to regulate bitcoin but regulation is not easy process that's why they are taking their time to understand how regulation will be done. Once they complete their research they will regulate bitcoin. Because every country are regulate bitcoin in this day, so India will also follow other country.
Why India will regulate bitcoin ? Because cryptocurrency will change the world. This is best technology we all know and Indian government are aware of it. Blockchain is transparent so its reduce corruption and make fraud less system.
Every business will switch their business centralization to decentralization.
India government know very well if they ban bitcoin people will still buying. China ban bitcoin but we all know Chinese people are still trading. Its decentralized blockchain based currency , no one can stop it . So Indian governments will regulate and they will start taxation on bitcoin.
And people are ready for tax pay. So hope they will make right decision and bitcoin will be legal in India.