India has a cultural and religious bias towards gold. They dont treat it as an investition, so I wouldnt expect for it to have some relation to bitcoin price. On the contrary, people tend to avoid risky investment on turmoiled situations. If the situation would affect anything is price of jewelery, and the amount of fake gold in the market.
Yup.
Also - given the recent mess over the changing of the 500 and 100 rupee notes, these threats about gold will just make the Indian population throw the current govt out at the next election, to prevent their assets being seized.
The difference between places like China (where the govt can and does make threats to the population), and India, is that India is a democracy and they enjoy throwing politicians out, and the politicians know this and have a healthy fear of the voters.