No, I don't agree with that. As I am an Indian, there is no say from the Govt. side to make bitcoin legal. But it's not illegal also.
It's not in use for general trade and not accepted in shops etc. (unlike in Japan)
Indian Govt. is little slow and thoughtful regarding online trade, even some forex trading is illegal in India. Also online payment systems like Paypal are not fully and smoothly functional in India.
We hope GST and other new financial evolutions will pump the status of online trading and bitcoins in India in near future. :)
That's true man!