@shyamno
As far as I know when you upgrade from personal to business / premier account, or you start a business / premier account directly, the sending limit is $0.00. Yes, you need to verify using a credit card.
Some other suggestions.
There are people offering virtual credit card etc. They may work too. But as far as possible, get your credit / debit card, attach it with paypal and make everything in a nice manner. Using some other people's credit card or virtual credit card is not a good way. Paypal ask us to verify or attach credit card is not just that, they do verify the physical address etc too by that. Do things in a legal / better way.
Regarding credit cards.
ICICI, HDFC etc credit cards can be used to verify Indian paypal accounts. Most of the Indian debit cards will not work.
Cash withdrawal from paypal.
Best way is to request a cheque form paypal. Also paypal allow users to withdraw funds to Visa cards (debit or credit). All cards may not be supported, but give it a try. Some details here -
*pages.ebay.com.sg/sea/paypal/withdraw.html
Bank Account
Adding a US bank account will help and that is another way of withdrawing funds. It is not a mandatory thing for any country, but optional.
And the final note - Always go legal, the right way and do not play tricks and paypal will be best for you.