I reached out to DA earlier this week for finding out if they have any policy on forming a local Drupal Association for collecting funds - if we were to start thinking from a Drupalcon India (2013?) perspective?
As i understand, there is no such policy from the DA. However, i feel, while continuing to use already registered India-wide non-profits such as "Free Software Foundation of India" (we used them to route all the funds for DCD last year) for funds collection, there may be value in forming an India-wide "Drupal Association India" (OR "The Indian Drupal Association"; OR similar).
This particular post was really helpful: http://groups.drupal.org/node/206303 (UK) in understanding the perceived benefits. There are some other countries having similar discussions.
Please spread the message around to get a sort of a vote on what route should we take? My personal feeling is that the larger vote would be for a separate non-profit -- a Drupal Association India. Yet, we have to be cautious that while forming another association is easy, getting it to function apolitically, in a democratic setup is rather difficult.
So perhaps, it may be better to stay with neutral and already successful organisations like the "Free Software Foundation of India" OR similar which have an India-wide presence and recognition.