Because the approvals are fragmented across central, state and municipal authorities, and the exact requirements differ from one state and city to the next. The risk is less a high fee than a long, uncertain timeline and the working capital it consumes while you are not yet trading. Planning for that fragmentation — and reserving cash against it — is the real discipline.
From India Restaurant Licence Cost: Every Fee, Explained — the full reading, with the method behind this answer.