Yes when government want to make cashless economy bitcoin will play a vital role in coming time. Also government will need to form the regulations and policies regarding it if they want to bring under per view of some regulatory body.
What the government here is trying to do with the term cashless economy is that people must start using debit and credit card or paytm for their daily transactions and must avoid paper cash altogether even for small purchases,so that the government has more control over us. If bitcoin has to clear the void here created by the economic stand by the government new type of bitcoin based business has to flourish here in India inorder to reach the general masses.