Well, Sony actually does have locally developed content for its consoles in India. The only catch is, they usually have those games made for the PS2 and PSP (which makes sense, since those are the most popular consoles in the country). But locally developed first party content for India is a thing.
I guess if we want more high quality and visible efforts, gaming culture in India first needs to take proper root. This is completely dependent on two things- the economy of India growing (so more people can afford the games), and the social attitude towards games in the country changing (games are still perceived to be a child’s toy in India and are not as socially accepted form of media as movies or TV are. Certainly, their acceptance is nowhere close to the acceptance they enjoy in the west).

Also, it would really help if piracy levels in India went down (meaning any developer making an investment in making a game for India actually had a chance to make that money back). So many people, as it stands today, are simply reluctant to actually spend money on games, which means no one is ever actually likely to develop a game in India, exclusively for the Indian market.

Just my ¢2, really.

Now imagine if India became more game oriented and they developed home grown games for Xbox, it’d be even more for Western gamers, Asian Xbox gamers etc, to eat up. Basically, I wanna see global Xbox studios developing games, to offer unique perspectives on gameplay, story, etc. I want Sony to do this too. That’s what I hope for in India.