Seriously limits technological progress. Pretty much insures Indian tech companies cannot develop this IP in their homelands. Who knows what kind of tech driverless car might beget, like space navigation, etc? What kind of economy of scale it would enable? The quality and lifestyle and savings from freeing people of having to be fully present during this dull activity. People could use that time in the car to do so many things.

Cars could be available always, not just when people are up. This could lead to a stronger economy, the car delivers the customer to the product, instead of he customer having to think about it. Less friction in decision making, more freedom.

For people of developed nations that get used to that lifestyle, it would be a world of night and day when they arrive in a place that is actively against the conveniences of life afforded by technology. Life, for these people banned from this awesome experience, would appear more bleak and torturous. Even viewed by some as primitive.

Locally developed military technology suffers, with the lack of local talent they would have to accept inferior technology.

There are probably endless implications for banning things. They could have been smart and just taxed this tech very high in place of taking jobs.

It is a silent catastrophe as a governing decision.