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Pioneer 310 should be available at around Rs. 3000 or lesser, in Grey, if you are not rigid on Bill & Warranty. It has USB input and can play DivX files. In my opinion, this should have better picture quality than the local ones.
Someone who has the 310 should be able to comment on the performance. I have the 610 and am totally sold on the Picture and Sound quality. Since you are not interested in HDMI, and probably also SACD & DVD-Audio, the 310 should be sufficient.