I would say Nokia 3110c because is complete VFM. You'll have to increase your budget by ~1.2K for it. It will come for ~Rs.4.2K.
It is seriously a great VFM phone. The features are:
microSD card support, FM, MP3/WMA/AAC player, Bluetooth with A2DP, EDGE, Java MIDP 2.0, 1.3mp camera + QCIF video recording. Keypad and battery life are great too.
