Indian Patent office started functioning as the International Search Authority and International Preliminary Examining Authority under PCT since 15th October 2013. An Indian applicant can now select the Indian Patent Office as the ISA while filing a PCT application. This will substantially reduce the cost incurred in filing the application from USD 4000 (with EP as ISA) to around USD 1800 (which includes PCT filing fees and Rs 10,000/- Indian ISA fees).
As a practicing attorney, I am not too upbeat with the quality of search reports issued by the Indian Patent office though this may change with the added responsibilities of functioning as an ISA and IPEA. Neverthless the50% reduction in filing cost is certainly good news for Indian applicants who intend to file PCT applications. More details available on the Indian Patent office website.