Can i buy iPhone from US and use that in India?

I'm from India. Heard that iPhone is cheaper in the US. So can i buy one from US and use here. Saw that iPhone 5 is available for $199 under contract. I mean, can i use it in India after paying another $ 199 for ending the contract.

Yes you can use it but you should unlock it
And some carrier have very high unlocking price.

Yes you can but you need to unlock it from a local mobile repair shop, the price for unlocking is close to Rs.10, 000

Dekh yaar iPhone is best, but buy only gsm unlocked in USA coz unlocking in India is illegal, let you unlock in India though its illegal you can't use full potential of iPhone.