As per Steve's Job keynote iphone 3g would be launched in India in the next few months. Check out its hosts of features out here
and yes you are right , all over the world it's 8 gig version is priced to a max of $199 and 16 gig version a max of $299.
Check out the below link for it's availability in India.
With such a competitive price i see tough competition for other cell phone vendors like Nokia in India. Already a big time user of ipod touch looking forward to this iphone 3g launch in India.
Check out Apple's India website for more details and features for Apple 3G phone.