Then indirectly the security and trust of the entire Internet rests in the hands of a few government babus in India... that's scary.

For good or bad, thats by design. These is a significant portion of physical infrastructure associated with internet data flow. The only challenge governments face as of now is being able to segment the traffic to their wishes in its entirety.

Companies already control all the traffic flow on their infrastructure using end-point security solutions, the same can be extended at ISP level, and then Country level

Their Internet registry people also weaponized AS0 (zero) as a method to take networks off air via BGP RPKI for the ranges they're responsible for. There's been a number of situations where multinational companies who operate in India who are forced to use IPs from the India RIR have been fat fingered by some staffer who makes changes then goes home for the day: meanwhile a multinational bank is down for 24 hours within the country because said agency doesn't believe in 24/7 support.

Typically they do this for non pay but they've dropped the hammer multiple other times incorrectly (and good luck getting a RFO out of anyone there).