When I choose an Indian keyboard layout, the country flag is not displayed. The indian flag is named dev.svg, but on my system it searches for in.svg. Copying or sym-linking dev.svg to in.svg fixes it, so I suggest this solution. Thanks :)
Viktor Odintsev referenced this bugreport in commit 24c154d92fbd2a0973512a5e68c56e3184fed4ef Bug 12441: Rename Indian flag filename https://git.xfce.org/panel-plugins/xfce4-xkb-plugin/commit?id=24c154d92fbd2a0973512a5e68c56e3184fed4ef
Fixed in 0.8.0