The answer to this question is simply, a big No! Indians do not like cheap products. Out of the huge population that India has, large proportion of people is from Low-income or Mid-income group.
Lot of brands & companies think they can price their products cheaply and selling it will be easier. This unfortunately is not true for India.
Indians are smart value conscious street smart customers. For ever product they buy, they calculate, evaluate and analyze much more than their western world counterparts.
Their purchase decision is dependent on the value expectedfrom the product and the relative price they pay. If your product gives them higher value during its lifecycle, they will be happy to buy your product. So, for any asset, be it a television, bed or an automobile, their decision will include upfront cost, running cost, maintenance cost, availability of service & free warranty period etc. This is over and above the product and feature comparison, which is generally done point by point.
An example of how Indians are different could be elaborated from the telecom expenditure of consumers. A consumer in Europe/USA would just know how much he is spending on his telephone bill. An Indian consumer will know how much he is paying per call, per message and even per GB data. Also, most of the Indian consumers would be aware of their usage of call/message and date. They know about their expenses in much more detail!
If a product has a short-life cycle with not much of importance they will ideally go for a cheaper product. On the other hand, if the product is for a longer duration say for a few years, they will opt for a good quality product with a good after sales service, though at a reasonable price.
Every industry in India has a different pricing strategy. Consumer products pricing varies within the categories themselves. Pricing and volume are inversely correlated much more than in other developed countries.