Software per se cannot be patented in India.
"but by then they'll probably have to start paying Oracle/Apple/Samsung et al their patent fees for Android, at which point $35 rapidly becomes unobtainable again"
All those software patents creating havoc in the western world would be invalid in India. (In India, software per se cannot be patented). The hardware patents must be already covered by the suppliers providing the components for the "Aakash" tablet PC.