I don’t see how this helps. If the law applies to Indian customers then the Indian government would just claim that they need to keep logs of customers connecting FROM India, rather than TO it. If the law is written the other way around then they could alternatively route all traffic to India with 2 hops via one of their servers in another country so that all traffic connecting TO India originates from themselves.
Feels like the right move. The whole point of VPN is to maintain some level of privacy. If all that data is logged and is to be produced on demand, Proton can’t really claim to be a VPN company.