Web hosting in India is a mixed bag. There are lots of local companies based in places like Pune, Bangalore, and Chennai, but none of the web hosts own their data centers. Instead, they're leased out, and this means they don't have direct access to the servers. Hostgator on the other hand, is a well-known brand that has the resources to manage its own servers. And due to their discounts and coupons, they have some of the cheapest web hosting on the market.
Source: Srinivas Tamada