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That depends on your interest! What do you want to do in life? What is more important to you - a stable, comfortable life or a high-energy, busy life? Govt. jobs will be relatively relaxed as compared to a job that you get after completion of your MBA or even while you are pursuing your MBA! Back to back classes, projects, researches, group studies, tutorials - life is going to be very busy during MBA or after that. So really, you will need to ask yourself, at this moment, what is it that you really feel like doing? Are your career goals aligned with it? Imagine yourself 10 years down the line and evaluate where you see yourself.
Preparing and applying for a govt. job is an ongoing process. You will need to apply to multiple depts. with the hope that you will crack some. In our opinion, why don't you do both simultaneously? Start your application to govt. jobs, and at the same time, start preparing for MBA entrance exams in India like CAT, XAT, MAT, CMAT,SNAP, GMAT etc.
An MBA degree will hold you in good stead in the long run - whether you are looking at govt. or private jobs. Think about it!