PayPal can only be used only as a gateway for payments of goods and services into India or Indian customers. It can be used for sending and receiving the international payments using PayPal to your friends and business partners worldwide. Moreover no transactions can be done through the PayPal account because of the Government /RBI (Reserve Bank of India) rules. If you have some budget in your account you cannot buy anything with that. PayPal account is just like mediator between seller and credit card/bank account. May be in future you will get a chance to create the donate button depends on the rule relaxation from the RBI.
Hope for the best!!!