The govt says that we don't have to worry about privacy because our data is safe with them!! :D. Also they ask for lot more permissions than location
"The app, conceived by NITI Aayog, has been developed in two weeks by the National Informatics Centre in collaboration with the developers of makemytrip.com and 1mg.com." [1]
None of these are sweatshops.
[1] https://www.indiatoday.in/magazine/guest-column/story/202004...
Here are the permissions it seems to use. I am surprised it's not as draconian as some other government released apps.