Forgive me for OT post but thought of letting you know (if not already aware) - Better choice is to go with Samsung Galaxy S 1 or 2 (I9000 or I9100) due to the below reasons:
1. 16GB inbuilt, you could get upto 32GB micro SD for around Rs.2.5k which is a more flexible, durable and FASTER option (if you go for a class 4 and above card).
2. Unlimited storage as you could HOT SWAP (on I9000, cold swap on I9100).
3. Bigger screen, much better display quality.
4. Teflon coated back cover and Scratch resistant Gorilla glass (better than what is used by iPhone 4).
5. 9 times faster graphics on I9000 and more than 30 times faster graphics and about thrice faster dual core CPU on I9100
6. Much better features on the OS (overall) and Gingerbread OS compares well with IOS in terms of finesse
7. Legacy USB Mass Storage support on ANY OS lets you copy and past files like any external storage. iPhone needs iTunes which needs to SYNC these files to specific PCs.
8. Official support for Wireless Tethering so you could use 3G service and use the phone as a WiFi Access Point!
9. No Signal loss issue like in iPhone when holding the typically usual places drop the signals.
10. Overclock friendly CPU and GPUs which significantly increase performance even further making them fastest phones (undoubtedly) after such unofficial mods.
11. Standard micro USB port (can use any standard Micro USB cable/charger, instead of legacy iPod/iPhone ones).
12. Cloud friendly. Direct integration of contacts, SMS, call logs with your Google account. Appls can be installed through ANY PC after you log in to your Google account (not sure if iPhone supports such features).
13. Bluetooth 3.0 with all the profiles enabled (unlike iPhone which still has 2.2 and also do not implement it completely).
14. Last but not the least, front camera on iPhone can not be used for 3G Video Calls (atleast out of the box). No such issue on SGS.
15. Use regular SIM. No need for Micro SIM.
Both phones come factory unlocked. SGS 1 is available for around 22k and SGS 2 is available between 29k to 31k (with Full HD video recording and playback on screen, HDMI Full HD 1080p output through Micro USB adapter which comes free from Letsbuy.com or can be purchased for less than 1k).