How to get Iphone 5 from International to India?

I'm planning to buy an iPhone 5 for myself but cost is always a consideration. In India, iPhone 5 (approx.cost) >= Rs 50, 000. Which i can't… In US, iPhone 5( with contract) = 200-300$ ( approx) = Rs 15000-20000 In US, iPhone 4 or 4S (without contract) = 700$ = Rs 35000This means for anyone, the only way to get cheap Iphone is WITH CONTRACT FROM US.
But following are my questions.
1) Will I be able to use it in india? ( Jailbreak etc.) --- What about contract? ---How can we break contract? (In a clear manner)
2) How can it be brought to India? ( Any Taxes/Customs duty if couriered)
3) What all things will need to be taken care before bringing it to India? ( activation and stuff… )
4) Will i be able to upgrade its software in india?
5) Will I get any warranty for it in India?
6)Since AT&T allows unlocking & Early Contract Termination is it possible to buy an iPhone in USA, pay ETF Fees and bring it to India? 7)Is there any other way like hacktivation or jailbreak?
So, please suggest me…
I want to buy from international…

"This means for anyone, the only way to get cheap Iphone is WITH CONTRACT FROM US."

Um, no. There are more things to consider. Yes the cost is $199-399 on the contract but you have to be American to buy it. Also since you obviously have no intent of honoring the contract you would have to cancel it which you can only do after 14 days & then a fee of $325 USD would have to be paid. Then you have to see about getting it shipped & then once you get it, see about getting it unlocked as it will be locked to whichever carrier you originally bought it from. After all of that then the phone is yours to do whatever.

Now let's see those questions.

1) Will I be able to use it in india? ( Jailbreak etc.) --- What about contract? ---How can we break contract? (In a clear manner)
As it comes, no. Explained that above. Explained the contract situation as well.

2) How can it be brought to India? ( Any Taxes/Customs duty if couriered)
Shipping of course, but again you would have to have someone there to send the phone to the courier. Of course the costs will vary depending on who you choose & how soon you want the phone delivered.

3) What all things will need to be taken care before bringing it to India? ( activation and stuff… )
Nothing really, but the same conditions apply.

4) Will i be able to upgrade its software in india?
Assuming you go through all what I described above, yes, but because it will likely be software unlocked you would have to wait until the unlock tools are updated as well before you could.

5) Will I get any warranty for it in India?
Most probably not, unless it would bought there itself.

6)Since AT&T allows unlocking & Early Contract Termination is it possible to buy an iPhone in USA, pay ETF Fees and bring it to India?
They allow unlocking for phones that have run through their contract period. 2 years. They would not unlock any old iPhone brought in. Explained the ETF earlier.AT&T will of course not do anything concerning getting it to India. That's your concern.

7)Is there any other way like hacktivation or jailbreak?
There's no way to jailbreak an iPhone 5 at this time.