Yes it is much better that government allow it and start taking tax on it whoever earning good in trading just like in share market because any way they cannot stop it.
With such a large population and bitcoin already being so popular it is near impossible to fully ban it. And I dont think this will happen at this stage. It is much better idea to put some regulations on it

Not again. 

To be honest, news like this is already existing even before 2017/2018. Things like bitcoin is banned in India, bitcoin will be ban in india, trading now is illegal in india, bitcoin is now illegal in india. And after so many years here it comes again Lol. I don't think they have the ability to ban bitcoin, yes they can regulate how people use it but banning it is really impossible. Even back 2018, nothing happened, people in india still has the ability to transact using bitcoins and crypto.

India's fear is almost the same as the Chinese fear. they are very afraid that their CBDC will not sell well if bitcoin is allowed as legal tender in their country

The good news that I have noticed is that currently the bitcoin price will no longer be influenced by conditions that occur in a country, it doesn't matter if they want to get banned bitcoin because their FUD is no longer effective

They banned it for fear that Bitcoin would replace fiat money that can be regulated and monitored by the government. Normal is possible for countries that don't want to thrive. They should have provided regulation, it would have been much better. Because the flow of money they remain in government control. FUD regarding Bitcoin is common. They've been side by side and FUD has become a recurring thing we know. My country provides access to crypto only as a commodity, not as a means of payment. It already makes me glad they don't imitate China.

every time people spread bad news it's easy to be accepted right away, it sounds like a restriction even though it is a process in accepting bitcoin in the community that cannot be done quickly

to my information nothing has happened banning india about bitcoin it is fully accepted by the government nowadays the government of india is highly accepting of crypto currency and more indians are investing and trading assets in their country and their decentralized assets are large because  many use bitcoin crypto it is not prohibited

India banning cryptocurrency was simply a rumor which created a FUD but the truth is India is actually planning to regulate the cryptocurrencies.
This is what I have been telling people every time they asked me about the current stance of cryptocurrencies in India.
The exciting part is the Finance Minister of India today said that the crypto regulation bill is under approval form the Union Cabinet.
Once approved the bill will be presented in the ongoing winter parliament session. Once the bill is approved cryptocurrencies will be regulated in India.

Source : https://www.ndtv.com/india-news/parliament-winter-session-live-updates-day-2-commences-2630083

Have they changed their minds again? What's going on with crypto in India, I don't understand.

Probably right now discussion is going on in Parliament so just because of this too many rumours about this around here no one know what is going on, but few things are clearly right they announce they are not going to accept this as payment method and secondly government is working on their own cryptocurrency because they are feeling its need of time and this can give them some better advantages and having own cryptocurrency is also mean they will bring some more legislation and updates about this all in near future.
Government is confused what to do and how to handle this all situation so just because of this they are taking their own time and trying to understand all positive and negative sides, hopefully they will announce clear statement in near future.