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iPhones in India (New Delhi)

We will be moving to New Delhi in a few weeks from the USA and I am trying to understand my options in regards to using an iPhone there. From what I have seen, buying an iphone is quite expensive. Therefore I am contemplating taking my phone from the US. Can my US phone be unlocked at a reasonable price or would it be better to buy an unlocked phone here to take with?
Secondly, how does service contracts work? Can you get a data plan on a month to month basis or do you sign a contract?
Any advice would be appreciated!