India is one of Google and Android's biggest markets both in terms of device sales and Play Store reach, but the country's purchasing power is quite different from the US or Europe's, especially if you simply convert a dollar to rupees (that's approx. Rs. 64).
Previously, the minimum price for apps and in-app purchases on the Play Store in India was Rs. 50 ($0.78), which was quite in-line with the $0.99 minimum in the USA, but still rather expensive for Indian customers. Now it has been dropped to a more affordable Rs. 10 (approx $0.156), the same as Apple's recent price drop for purchases on the Indian App Store. While this doesn't solve the problem of lack of decent debit card support or carrier billing in India, it does serve to bring apps into an impulse-buying bracket for users who already have a valid payment method.
Developers who want to change the price of their apps or in-app items for Indian users will be able to do so from the Developer Console by selecting an app and clicking Pricing & Distribution or In-app Products. I tried to see if this minimum also affects other Play services that are available to Indian users, like Books, Newsstand, and Movies, but I couldn't confirm it so please let us know if it does.