According to Airtel(http://www.airtel.in/iphone3g/getready.html), iPhone is sold for INR 31000 in India. As per today's exchange rate(http://in.finance.yahoo.com/currency/convert?amt=31000&from=INR&to=USD&submit=), INR 31000 is $ 632. The price of iphone in usa is $199. Although AT&T is subsidising iphone, I don't think that will be more than $400. Do you think Apple is subsidising iphone in India ?
Plagiarism happened in Yahoo's Malayalam portal not Malaysia. It seems that you got confused between Malayalam and Malaysia. Malayalam is a language spoken in the South Indian state of Kerala. Malaysia is an independent country in South East Asia.