With in 24 hours of the news that Google has allowed Indian developers to list their paid applications on Google Play store, Google has performed a U turn and update the following http://support.google.com/googleplay/android-developer/bin/answer.py?hl=en&answer=150324 web page by removing India from the list.
There is presently no answer to the Why question but the most probable reason could be that some Google employee has mistakenly included India in that particular list. Other reason could be the Microsoft App Fest.