Is it? If everyone in a country used FOSS apps rather than paying (in money, data, or letting ads into their heads) for proprietary ones, wouldn't that country's people be better off?
And nobody's saying there can't be indian-made FOSS.
Unless you're talking about the government putting its own interests above the people's, which makes sense.
If you look at the list of apps, pretty much all of them requires some kind of back-end. Even if its 100% FOSS, the back end will cost money. Therefore someone has to pay for it somehow and someone will profit.
Its obvious to their best interest that the one that profit is an Indian company, with ties to the government.
Unless you're talking about the government putting its own interests above the people's, which makes sense.