I bought the I Touch 4g when I was travelling in Jan. The price I paid was about$350 for the 64gb model.
I have been addicted to it ever since.
There is huge amount of space to put everything from music to tv shows to movies to games. The playback is pretty decent. There are tons of games which u can download for free. The once which I like are Angry Bird:), Paper toss and all the racing games which a motion sensitive. Of course when u are playing those games people think u are a fool, but who cares.
The I Touch also comes with dual camera and WiFi. This enables you to do voice and video calls over your WiFi Network. The cameras are like similar once which u find on the iPhone 4.
You can also configure your emails, log onto MSN messenger, Google talk, Skype, blah blah. the list is endless. I would strongly recommend you this devise if u need an ultra portable entertainment/utility devise. However I have realized that the price abroad is much lesser abroad(it was 8k more when I bought mine). Maybe ask someone who is coming to India to get one for you.