I noticed today when I was checking out of Mitsu that they offered India hosting packages.

I wrote Mitsu and they confirmed that the hosting servers were located in India (Mumbai) (although for some reason, the email servers are in the US, but I don't think that matters).

I'm going to "take one for the team" and I've just signed up for a package to see how it goes. You have to prepay at least 6 months, but it's very cheap. I signed up for the "MLRegular" plan which is INR 199/mo. It includes 2000 MB web space, 1 mysql database, and 5000 MB monthly transfer. You need to pay extra for email accounts and dedicated IP addresses (I haven't done this).

I'll keep this thread updated with my experiences.