If you connect to an indian vpn server in India, the IP you use will be the one of the server. Your personal IP will remain hidden just the same as if you connect to a different country. Only the VPN service will have your original IP adress and if it's a good service they won't save it. I use a VPN at home most of the time myself and I usally connect to a server in my own country, because it's usually the fastest and it still keeps me "safe".