The thing is if the goal is to create jobs then this policy is counterproductive. It's a great way to ensure that in 20 years time India has no car industry left. When foreign companies have had decades long lead in autonomous tech there's no way Indian companies will be able to compete with them either in foreign or even domestic market when self-driving cars are allowed.
Create a few extra jobs now and destroy an entire industry in the long run. Just like India has a blanket ban on all small drones which just means that whatever innovations come from the drone industry, India will only be its importer.
The sad thing is Nitin Gadkari one of the more sensible ministers and yet this is coming from him.