Yeah, VPS will be a good option but for a long run I would suggest you to go for a dedicated server as 20000 visits + Flash based website may overload VPS as it’s a virtually hosted and downgrade the performance of the website. You can find a dedicated server (Dual Core Intel Core 2 E4600 with dell hardware) at 6,600 INR per month without any control panel (If you want I can provide the hosting company name too).
If budget is the issue you can start the website on a VPS and later you can move to a dedicated server for dedicated resources....