The real issue is that Indian tech companies want to be able to bundle their crap with Android phones and still take advantage of the Google phone/Android brand.
They're welcome to sell forks and bundle all the alternative software they want with whatever store they want, they just can't call it an Android phone or call themselves an Android manufacturer.
What Google requires of OEMs has been known for a long time and isn't a secret. And as I already pointed out, companies like Huawei and others successfully sell Android forks with alternative stores and apps.