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I agree, India in general has pretty bad bureaucracy against tourists, it feels like the government doesn't care at all about attracting them.

But I recently saw that Wise supports transferring money to India via UPI (also more anecdotally - I am living in Singapore and saw that some local banks have this feature as well). I guess this won't be as comfortable as just scanning a QR, but couldn't this technically work for tourists?

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I visited India at the start of this year and attempted to pay for my accomodation with Wise (the business didn't have a credit card terminal that took foreign cards). The payment was accepted and marked as sent by Wise, then I went to reception and they said their bank doesn't allow them to receive foreign payments and it would be returned in a few days (which it was). So off to the ATM I went again...

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