After i sent a request to geofabrik for India osm extracts, they are now available and are updated every day. download: http://download.geofabrik.de/osm/asia/
The extract is in a highly compressed pbf<http://blog.geofabrik.de/?m=201009>format and only 14mb in size (uncompressed size is ~500mb) The other source for India extracts is cloudmade, updated only monthly though http://downloads.cloudmade.com/asia/india -- j.mp/ArunGanesh
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