Most people in India, if they want a few songs of an artist only, download songs off P2P. If they are caught doing this, the excuse most of them will have is that there aren't any sources from where to get song downloads. Indiatimes gives them, but again, they sell songs for around 40 bucks. The alternative we have are CDs, but most people would rather not buy a whole legal CD for a couple of songs.
Thus music companies and record labels need to ease their prices in India if they want piracy to be reduced. And this does not mean giving substandard quality stuff like Microsoft did with Windows XP Starter Edition. Apple is definitely not taking initiative in this case.
The other reason why I think Apple isn't planning to open a store in India is the iPod factor. The songs are in MPEG-4 format, so they can't be transferred to any music player other then the iPod. But the iPod is still considered an object of desire by many in the market. People would rather have WMA files, if copyrighted at all, so that they can get them onto common music players.