I am from India and I am pretty concerned about terrorism, but I am assuming that the people/businesses who will end up following such rules would most probably be the people who aren't planning any thing nefarious.

Meanwhile, the real bad guys are going to find a way around it - and will the govt of India pay me damages if my private key ended up on piratebay because someone stole it from their servers? Nope, don't think so.

Most Indian's have been brainwashed into accepting flaws/weaknesses in (big)governance, kind of like - "its a feature, not a bug"