I don't think some of that is due to malice but incompetence/disregard for privacy in the IT sweatshops that produced it.
"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.