Except they are also banning ex-pats from operating Indian aircraft. Quickly resulting therefore in pilot shortages, and the continued dominance of legacy, state-owned airlines over more efficient private enterprise.
Now that is not the result that you would have preferred is it now, 411A. Bloated state carriers over efficient private carriers?
As pointed out by many before, 200hr cadets have operated very safely for many years in a huge variety of airlines, from BOAC/BA and Cathay to easyJet and Air France - KLM, all safely gaining extensive operating experience in large jets from day 1, with excellent training behind them and excellent colleagues from whom to learn.
The problem occurs only when incapable, undertrained cadets are recruited, operating with inexperienced captains.