Business Standard is reporting that Apple will launch the iPhone in India come September this year.  Quoting “Apple retail sources”, the paper suggests that an exclusive deal for the handset is under discussion, and that the 8GB version will be priced at Rs. 27000-28000 ($680-700).  No details on contract obligation have been suggested.

Considering by then we’re expecting to have seen the new 3G iPhone, both the price and the timescale don’t quite ring true.  In addition, mocoNews claim you can pick up an unlocked, hacked 8GB iPhone in India for between $450 and $525.  Whether users will be willing to foot the extra $130+ for an official version is doubtful.

India has been the subject of many iPhone rumors, although the country is yet to see significant interest from Apple regarding the handset.  The report also suggests that the 16GB iPhone would, depending on customer takeup, be released there in mid-2009.