You can buy bitcion offline. You meet in person with someone and hand them cash and they give you an address. wouldn't do it for huge sums because of the risk, but it is a common thing in the US at least.
You can however buy computers and power using INR quite easily. The government won't know what you are doing with your computers and power.
What do you mean? To whom are you showing a paper trail? Do you have to account for cash withdrawals from a bank?
Do you have to show a paper trail if you take out some money from the bank, and use it to buy a motorcycle, or twenty barrels of grain, or ten iPhones?