Its quite a common practice in india to keep pictures of gods as desktop wall papers and do home based spirit chasing on occassions. we even have a festival for gadgets and machines(ayudha pooja), when people put sandal paste and vermillion on computers, mobiles and gadgets, show champhor fire to ward away evil spirits and pray for good coding and business with those gadgets. this is done by the geekiest of geeks and the whole software industry even in software development centres in our silicon valley bangalore.

companies like airtel will use its hardware subsidaries like beetel(sp not just the unknown iBaton) or other indian manufacturere(rather import and relabelers) will import the same huwaei or ZTE spec devices manufactured in taiwan or indirectly in china and sell it. so govt here just helps the indian middle men if not manufacturing.
BTW the software for cisco to juniper et all are developed here in india and the hw made in china. so big deal its quite the same for american companies as well

exactly what will happen. infact even the software will be packed as is without even testing. this is the case with all the indian handset manufactures who sell samsung salaxy s2 or higher spec android phones and tabs at 1/5 of the cost.