In the past, Indian security agencies were said to have issues in decrypting anything beyond 40-bit key length and hence required decryption keys. Govt may not have the bandwidth to decrypt all the communications happening over the Internet, but in specific cases where there is an imminent terrorist communication or a fake money transaction, they should be able to decrypt it for the sake of security, says Rajat Khare, Director, Appin Group of Companies. It has happened in the past that communication which was very sensitive, could not be decrypted. The need of the hour is to upgrade our infrastructure to be able to decrypt at Govt level, and also allow the ISPs to take necessary encryptions at their end.
The bad guys will usually be more competent at cracking encryption than the gubmint, so if your gubmint you to make sure that they are able to read your encrypted data you should probably assume that your data isn't effectively encrypted.