Yes, host surrogacy is allowed in this country, but only for Indian people, foreign residents, or foreign people married to an Indian citizen. Also, only married heterosexual couples that have been married for at least 5 years have access to it.
These regulations were approved in October, 2015 due to the massive arrival of foreign couples and persons willing to undergo surrogacy in India. As for the GC, she must be a member of the family. Especial emphasis should be put on the fact that traditional surrogacy is not allowed in any case, as a requirement is that she has no genetic link to the child.