"What it could be" ? You're kidding me, right?
Most definitely stop, find a new chain and sprockets. Go to HU community, maybe someone there can direct you to a source? In a City of so many millions there must be someone who can get hold of a chain/sprockets for your bike.
Repeated stretching indicates chain is totally gone ...next it will BREAK! Not good.
Do you not carry any spare front sprockets with you? I always carry TWO. The front is the important one and wears quickly. Once worn, it eats your chain quickly and accelerates wear on rear sprocket too.
Do you know what size chain your AT uses? It's one of 3 pitch sizes ... either 520, 525 or 530. Hopefully it's a 520, as that is the most common size, may be easier to locate. The number refers to "pitch" and is common, worldwide reference. Use it to locate a new chain but it must match sprockets.
Can't believe you got all the way to India before knowing your chain and sprockets were shot. Ever actually looked at your front sprocket?
The front sproc wears the worst ... and by now could be missing teeth or looking something like this:
Try to find a QUALITY O Ring or X Ring chain. DID, RK or EK are all quality Japanese chains, best in the world. But buy what you can find and afford. I doubt an Indian chain will last long but better than pushing.
Be SURE to buy NEW sprockets too ... these may be hard to find or maybe you will get lucky. A tiny chain from a 100cc Pulsar will not work. You must match pitch: 520 chain goes with 520 sprockets and so on.
When the guy removed two links (!!

!!) from your chain, that SHOULD have been your clue: Stop Now, find new chain and sprockets.
Best you can do now is ride very gently, slather chain heavily with 90 wt gear oil, keep it adjusted best you can (not too TIGHT .. a bit loose is FINE) and pray to Krishna you make it.