AFAIK, the government has not attempted to prosecute anyone for using stronger encryption, and other government departments/organizations have made conflicting recommendations, especially when it comes to online banking and capital markets. Barring new regulations that clarify the government's position, the status quo is that ISPs cannot apply strong encryption themselves, but are not obligated to prevent their users from doing so.
At least one ISP has gone beyond this mandate and tried to block the use of stronger encryption by their customers[0].
AFAIK, the government has not attempted to prosecute anyone for using stronger encryption, and other government departments/organizations have made conflicting recommendations, especially when it comes to online banking and capital markets. Barring new regulations that clarify the government's position, the status quo is that ISPs cannot apply strong encryption themselves, but are not obligated to prevent their users from doing so.
At least one ISP has gone beyond this mandate and tried to block the use of stronger encryption by their customers[0].
[0]https://www.privateinternetaccess.com/blog/2017/07/indian-is...