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To prevent third party resellers from making a profit for nothing, Steam prevents buying cheaply in a poor country and reselling/gifting into a wealthier country.
For example Valheim is $19.99 in the USA. India is a poorer country. The price for Valheim is 880 rupees. On the international currency exchange a rupee is worth $0.012 USD. That means someone buying the game in India is paying the equivalent of $10.56 USD for the same game so Steam prevents people in India from buying Valheim and selling/gifting it to someone in the USA. Someone in the USA might be able to buy and gift the game to someone in India (I did not check to see if that is true) depending on Steam's rules and the laws in those countries.
Its still expensive in India based on average income. The regional pricing is a 40% discount but the difference in average wage is 3x (ie: the average wage earner in India makes 1/3 of what the average wage earner in the USA makes) so a 40% discount still makes it more expensive for someone in India based on their income and economy. If they had to pay full price in USD it would be the equivalent of a $60 game in India. The discounted price makes it more affordable but not equivalent.