1.Is it possible for me to set up an online store with my Indian address ? Since I want to work irrelevant of location, would it be a problem later on if say I move to another country ?

Dan Answers: Yes, it is possible to set up with Indian address.

2. Is this drop shipping applicable only to US nationals or even I can create an online store and sell to audience worldwide using drop shippers?

Dan Answers: You can create an online store and drop ship around the world

3.Can I do drop shipping through my Indian Bank details or should I have a U.S. bank account created for this business ?

Dan Answers: Yes as long as they can use PayPal they can use the dropshipping model.

Related article: https://www.shopify.com/guides/dropshipping/understanding-dropshipping