Why is iphone priced at 31k in india?

Finally iPhone has come in India, the price is 31k for 8G and 36k for 16 G, which is almost more than three times the actual cost. What is the reason behind this? The manufacturing cost inclusive of all the profits comes up tp 400$ which is around 16k INR. Are they charging us for the 3G iphone or 3G license?  Will explore the reason behind this.

This the confirmation letter i got from a Service Provider.They are asking me to pay the actual price, i.e 10k as advance to get the iphone.

Hello Bala,

Thank you for registering for your Apple iPhone 3G™ with us.

We are delighted to announce that the iPhone 3G will be available in India from August 22, 2008
It will be available in 8GB & 16GB models, priced at Rs 31,000 and Rs 36,100 respectively.

Be the first to get the iPhone

We have received a large number of registrations. As there are limited stocks, make sure that you get yours first, by paying an advance of Rs 10,000 to confirm your booking.

Get an appointment now. No queues for you.

Once you pay the advance, we will immediately give you an appointment date and time, starting August 22 when you can come and experience a full demonstration and collect your iPhone, all ready to use with your contacts and settings, by paying the balance amount.

Inflation ? lol