Purchases using Paypal balance is not allowed in India the last time i checked. You can buy with paypal and for that you need to add a creditcard in your indian paypal account. So, when you buy something online via paypal, the purchase amount is directly charged on your creditcard
As far I know , If you have your money in your bank account you can't remit the fund to your paypal by conventional transfer , you have to use credit card with dual currency support to upload the fund to your paypal.