I originally received my passport in this condition. The outside of the front cover has a visible crease. Every other aspect is totally clean, including the biodata page, visa pages, and even the backside of the cover.
No, it's not a problem as long as the personal information page and the biometric chip are not affected.
If you don't need to use the passport immediately, though, you might still want to get it replaced because it's clearly a manufacturing defect. This may involve a slow and painful battle with Indian passport bureaucracy though.
A small crease as you show is very unlikely to be a problem.
Passport control often scan the document at a machine, and if it scans, and they can see the photo/personal information clearly, that is usually fine. I once had mine go through the washing machine and it was ok, though they weren't happy about it (this was travel to the US). Still, it scanned, and the personal information page was intact and readable, so they let me through.