Finally, thanks to "The Hindu" newspaper, I came to know about the existence of printing digital photos via websites in India.
Almost all of these sites provide unlimited storage for photo albums and will print and courier photos to your home. I'm yet to see a tie-up emerging between these photo sites and a major retailer like Food World, Spencers, Trinethra, Subiksha, Reliance Retail, Konica or Kodak Digital Express Studios, etc. That option would allow me to ask my prints to be printed at the nearest retailer and provide a pick-up option, thereby saving on costly courier charges.
Here's the list of sites.
Snapfish India (a wholly owned subsidiary of India)
Have tried out Snapfish, fairly satisfied with the photos. The site definitely has a lot of scope for improvement. Their courier charges seem a bit on the higher side when compared to others. However, the HP name is what gives me certain amount of peace of mind in terms of a lot of things.
May try out others.