The following is one person's experience, and one person's experience only. So take it for what it's worth.
I lived for a year in Bangalore (now India's #3 city). In that limited experience (plus trips out of town to other places in southern India) I rarely saw any floor covering (rugs, carpets etc). That includes stops in hotels, some 5-star, some more modest.
In the places I saw the "thing to do" to show that one has "arrived" economically was to make your floor marble. Marble floors are usually left bare, in my experience. For beauty reasons, since good marble is pretty. And for practical reasons. There is an enormous amount of building all over India. The way Indians build is they pile mounds of dirt or whatever you call the stuff that will eventually be mixed into concrete. They pile this on the street in front of the home or commercial building. The result is the air has a fine film of dust in it. This dust is hell on rugs. You can't keep the dust out of rugs. So people stick to bare marble, which can be mopped, rather than rugs and other floor coverings, which attract dust.
Maybe it's different up north.