I'm going to be in India in December and probably could report how it's working than ;)
So far I've checked on LocalBitcoin, if I want to sell BTC the price range is something like 800-920$ ( and about 1000$ if I want to buy )
But the only available mode of payment for BTC seller is "transfer to account in Indian Bank" ( no credit card or Western Union options provided, also you can buy BTC with Western Union ) Also as far as I know it's possible to get an account in Indian Bank even with tourists visa ( you have to provide a rental contract) but probably due to this notes shortage the money would be to hard to withdraw.