The iPhone pricing in India was initially though to be subsidized below 20k. However the latest news suggest that the iPhone will be launched for something in the range of Rs 31000 (8GB) to 37000 (16GB). Though the demand and hype is good; such heavy pricing would discourage many potential buyers.
And if our source is to be believed, Airtel has received around 400,000 pre-registrations for the iPhone. Even if 20% of those actually decide to buy the iPhone 3G in India then Airtel would have some 80,000 orders. However it is said that Apple has provided only 25000 iPhones to Airtel initially. Thus the decision to keep the iPhone a top-end product (which it is) and thus peiced at a heavy premium.
The prices are expected to fall after diwali. Enjoy!