Well, I was assuming that OP had done his bit of reasearch (in the terms of what his budget is, his choices in that budget, the phones in the budget he doesn't like because of a particular reason)...So, between those choice, definitely HTC Desire.
I also, feel HTC Desire might be a bit overpriced (well, most HTC phones are), esp. when compared to Galaxy S..
But, considering OP's budget, I think OP should not go for anything below Dell XCD 35 (I don't know about its availability, also haven't heard about user experiences of this Indian variation of ZTE Blade aka Orange San Fransisco, which had received some really good reviews, in that range)..
It would be really helpful, if OP could tell what he is looking for in the phone..
IMO, if you are looking primarily for an Android phone with a v.good camera, you can't go wrong with Xperia x10 (at least, it now has Android 2.1
)..
If multimedia capabilities are v.important, in addition to a quite good camera (and if you are looking to buy android, because you love customising), look no further than Samsung Galaxy S.
If you want your phone to work right out-of-the box, without much delays, and a good phone overall, then HTC Desire, is a good option..
I am quite unenthusiastic about the XT720, and the Milestone would be a bad option if you don't use a physical keyboard (which in any case, is not that good. Plus, it adds to the overall size.Not to mention, it has become a bit outdated. But, a really solid phone, esp. if you can get it below Rs 21 k )..