Honestly, Anything above 2 Mbps is a waste for most of the users. 2 Mbps works for every application except Hi-Def video, for which you can get 8 Mbps + in India quite cheaply.
I am on a 40 Mbps connection in India and can watch movies in HD without any lag what so ever
I'm getting 20mbps unlimited for 800 bucks in Delhi though i'm looking to switch to other ISP which can provide same plan for 700 INR.