Let me try to explain the concerns using couple of points:
(1) Google (if it wants to), can influence the opinion of the entire country, by promoting content it wants people to see. That essentially could mean, a government coming to power that Google likes, not the people of India.
(2) With India lacking any data privacy law, this data will flow to google's data centers outside India. In a (future) war like situations, this data could become an important weapon.
India's Election Commission, a constitutional body responsible for conducting free and fair elections in the country, has finally heard the concerns of the citizens and has called off its plans to use google to help voters locate polling stations. In the guise of providing this as a social service, Google was trying to get the demographic data of the entire population of India directly from the government. What was that again? "Dont be evil"? yeh! right.
Digital currency facing regulatory hurdles in India. BuySellBitCo.in has posted this message on its website:
"Post the RBI circular, we are suspending buy and sell operations until we can outline a clearer framework with which to work.This is being done to protect the interest of our customers and in no way is a reflection of Bitcoin's true potential or price."