India appears to have a burgeoning radio-controlled aircraft scene with plenty of hobbyists as well as vendors across the country. The following is a video of a 2010 event held around a 100 km out of Madras by the RCPA (Radio Control Pilots Association) in an area dedicated to this pursuit. As you can see, the field sports a full-fledged runway and associated amenities.
My guess is that the field is located at such a distance from the city for reasons of cost as well as legality - flying model aircraft too close to the city probably violates some code or the other.
A rough idea of the prices involved can be gleaned from this rather dated website. The RCIndia fora appears to be the best place to source information. While the majority seem to use "ready to fly" kits, the more enterprising few build their own models. Looks like great fun!