I'm personally putting as much money as I can afford into Indian domains.

It's obviously a lot more of a speculative investment than .com's, but I think that it is very worthwhile.

Indian companies are using .in and .co.in domains more and more. With the large population in India plus the rapid rate at which internet penetration is occurring there, I think that the values of Indian domain names is set to increase substantially.

There are already many domain sales in the four figures, and a lot of these domains were originally registered only in 2005. That's a pretty large ROI. I don't know that more recent registrations will appreciate in value that quickly, but I do think that the rapid appreciation in value will continue.

One drawback is that Indian domains aren't as liquid as .com's, so I'd buy with the view of holding on for at least a couple of years.

I also get type in traffic to several of my Indian domains, which shows that people actually use and think about .in and .co.in in the real world - it's not just domain speculators pumping up the prices.