With so much news about "the govt is listening to us"

http://www.dot.gov.in/isp/guide_international_gateway.htm

See section II,point 1

Individuals/Groups/Organisations are permitted to use encryption upto 40 bit key length in the RSA algorithms or its equivalent in other algorithms without having to obtain permission. However, if encryption equipments higher than this limit are to be deployed, individuals/groups/organisations shall do so with the permission of the Telecom Authority and deposit the decryption key, split into two parts, with the Telecom Authority.

And section III

These requirements have been there forever, they are not new