"Well, if what he's saying is true.. then you'd lose the chance by saying no anyways. So getting caught lying is the same result as not lying."
That's only true locally. Globally, you've got a variety of reputations, for yourself, for your firm, and whether or not you like it or consider it fair, for your country. You're burning all of those things. This will eventually catch up to you, your firm, and your country if withdrawals exceed deposits. This is, of course, a global truth, not an India-specific truth.
It'd only be useful to be honest if you do have a skillset, and the company has a reasonable chance of reaching out to you fot the skillset in the (near?) future