India is a big place, like the United States. Within the United States (or any state within), there are varying levels of safety with respect to crime and other hazards. It would not be surprising to see similar variation in India or most other countries.
In any country, thieves and scammers are probably attracted to visitors, since visitors are less likely to be familiar with how local thieves and scammers operate, and may be less likely to be able to help the police catch suspects. I have heard similar warnings about thieves and scammers when visiting various countries.
Of course, that also means that you are washing your hands, etc. in unsafe water… brushing your teeth would have to be done with boiled or otherwise decontaminated water.