The Indian Government is not just confused. I'm pretty sure they are slowly seeing the benefits of blockchain as other countries are slowly adopting it into their systems. Many sitting in the government bodies are still uneducated on blockchain and will require someone who has in-depth knowledge to explain it to them. Maybe then they'll open their arms towards blockchain-based companies.

When it comes to cryptocurrency - They have not considered cryptocurrency as legal tender but are looking into it. I can't find the original post but this site shows the questions by Lok Sabha answered by the Ministry of Finance in brief - https://cryptodost.io/india/lok-sabha-on-cryptocurrency-indian-government-still-negative-on-cryptocurrencies.html

And I'm pretty sure, as all Indians know, everything takes time in India for a final decision.