Exchange your cryptos in a juridiction abroad where it's allowed (e.g. Singapore), and spend those savings. Problem solved. No ?

How do you exchange your cryptos? You would need an account at a Singaporean bank. Then spend your savings in Singapore, and go back to India empty handed?

Well obviously there's going to be a level of trust seeing as recourse is narrower, just like any black market transaction. Maybe even some possibility of extralegal recourse. But people can and therefore will do it.

Not really, nobody buys a house in the black market.

In India the vast majority of property transfers are off book.

I thought so. Some commentators here are a bit dislocated from regional realities.