You can get an unlocked iphone in India for the price mentioned above. I really would buy that if it was offered by a mobile company or someone who would have offered some warranty.
I heard all kind of problems with these devices some have problems with screen some with software etc.
And the bad part is once you buy this you can't update the firmware. So you will be stuck at what ever firmware you get. So in February when apples adds third party app's support you will be out of luck.
So lets all hope apple will release the iphone official in India soon and at a reasonable price.
Until then if you are looking for a Smart phone with cool features get the HTC 3300 which has GPS with maps of major Indian cities and Windows mobile 6 with 2mp camera, Fm radio, Bluetooth 2.0 etc. for 21699