PayPal now allows three types of transactions:
1. Payment for Goods and Services:
You can get money via PayPal for selling goods or services.
If you sell products and people pay you money for buying your products: then you can use PP to get your money in India. Same goes for people providing services and getting paid for that.
2. Paying Money at Websites via PP checkout
3. Paying via Email Invoices
If you are doing free online jobs for buyers at freelance sites then you are perfectly eligible to receive money via PP in India.