The main differences between the P1007 and the P1008 seem to be -
1. The P1008 has more memory built in (8MB vs. 2MB) and is slightly faster (16 ppm vs. 14 ppm). IMHO, the slightly faster print speed is not important unless you have large amounts of print jobs regularly.
2. The P1008 has an extra "priority slot" for feeding paper. I have this slot on my LJ1020 and find it useful. Since I print on A4 paper most of the time, I keep the main paper tray set to A4 size and use the other slot when I want to use other paper sizes such as Legal, envelopes, etc., adjusting the size in that slot as necessary. It's up to you to decide whether this feature is important for your own use. It's simply a matter of convenience as you can also adjust the paper size in the main tray.
One piece of information I could not find after a quick browse is whether the quantity of toner originally supplied with the printers is the same for the two models. With the older LJ1018 vs. LJ1020, one significant difference was that the cheaper LJ1018 was supplied with a "starter" toner cartridge containing a reduced quantity of toner. With a new toner cartridge costing around 3k, the lower initial cost of the LJ1018 was offset by having to buy a new toner sooner. Perhaps you should ask about this at your dealer.
BTW, which part of Hyderabad are you from? Someone close to me is in JNTU. Maybe you'd like to contact each other.