Yeah that's right.. they are shutting down because of their inability to keep up with other top exchanges in the country. Not because of the government.. The government made it's stand clear on the cryptocurrency market in India; quoted from the post you @firepower created sometime back where the prime minister gave a brief over view of how the government was in support cryptocurrency and blockchain.
It's hard to operate an exchange when you don't have the financial power to maintain the massive exchanges people have. This I support you here; people should withdraw their holdings to avoid any future regrets. I've witnessed people losing lots of money in such scenarios, when an exchange closes.. And they end up not getting compensated even though the law suits are filed against these firms. Am not sure of the other exchanges, but I've done my research on Coinome as I've witnessed some Indian friends using it. I feel it's reputable enough for the Indian nationals to go for without any insecurities.