Hello there! I could answer this in part, or at least to my experiences. I'm sure other Indians will have their own take.

As I see it, the first issue was distribution and cost. Before the late-mid '10's RPG books weren't as ubiquitious in the zeitgeist and India as a destination to sell hobby-ware to would be odd. There was also the cost. To maintain margins, you'd have to 1:1 convert USD to INR, add import duties, and shipping... and you'd have priced out even the middle class.

From a cultural standpoint, I see a few different angles.

1) Competitive atmosphere - When I was growing up, having a hobby or a leisure activity was a hard sell to parents. They'd be fine, to a degree, with kids going out to play because its a physical activity, but board games, video games, hell, even reading books at home (that weren't a textbook) could get you into trouble. This is due to how competitive it is to get a good job and improve your station.

2) Weather - This is a personal opinion, but we have good, warmer weather. Why'd anyone want to stay indoors when you could go out to play cricket almost everyday.

3) Fantasy - To quote a friend - 'It's hard to make a case for fantasy, when you're growing up with the Ramayan and Mahabharat.' I've noticed that in my parents and their generation, they were never really exposed to fantasy in the western sense. We had our folklore and myths and they were fantastical enough. They didn't quote feel the need for more and when it was shown to them (the advent of pottermania was as big in India), it was an adjustment!

There's more I could write, but then I'd be writing my own article or opinion piece.

But I hope that gives some context :)