Doesn't it partly depend on import taxes? Most HMD phones are made in China, so to sell them in India they have to pay India import taxes. I think FIH have just opened a factory in India so it's possible this will bring some price reductions, but probably not immediately.
Thanks for clarifying the import taxes thing, I didn't realise that HMD phones sold in India were also made in India - that's great news!
The HMD/Nokia community team very kindly gave me the "Community Hero" badge for being nice to people :D (I think). There was a discussion that I thought had become personal, insulting and offensive so I tried to calm it down. My action wasn't universally welcomed, but I think the community team liked it - at least, I think that's why! Their official explanation is here: https://community.phones.nokia.com/support/discussions/topics/7000012502
I own a Nokia 5 (Made in India).
I still feel I paid a premium price of 13K for my phone compared to other phones of similar configuration which sell for 8k-12k (Redmi 4 and others). But I really appreciate Nokia phones for their build quality (Metal!) and they are great for regular / daily use.
I expected Nokia 7 to launch in India, but it seems to be a China exclusive model. OnePlus 5, with SD 835 was priced around 28k compared to SD 660 of Nokia 7 Plus, hence the "Overpriced" tag.