Dear artbuc,
You require to accept PayPal only when you are selling your products world wide.
If you want to list your item as "Local Pick-up Only", you will have to select the default "PaisaPay" payment option which is mandatory on eBay India.
You can add more than one payment option if you want to. But, personally I feel that shipping via courier is always the safest option rather than pick-up.
With Regards,
Suman.