If India is anything like my country (Brazil), corruption is rampant and enforcement outside business environments is pretty much non-existent, so, no, no one is afraid of piracy for domestic use. We used to have street vendors and booths on strip malls selling all kinds of warez on CD/DVD. The only reason they're not around anymore is because internet speeds here are already good enough that downloading is easier. And no, no one will cut you connection because of it, our congress already approved laws saying that access to digital communication is a civic right.