Why don't you withdraw funds from your paypal account to your indian bank account and then spend it for shopping in local market ? DON.
There are limited or almost no shopping sites in India which accept Paypal as a Payment, either becos of its non-popularity among most shopping site owners or becos of the risk involved.
It is very hard to find shops which accepts PayPal payment. Better you withdraw to your bank and then have a great shopping.
Thats the reason i suggested first to withdraw funds from pp account to bank account then spend directly to buy. DON.
This link may help you: https://www.paypal.com/in/cgi-bin/webscr?cmd=xpt/Marketing/general/NewConsumerSafe-outside
Thanks to all! No, there is no problem in withdrawing and yes i have verified paypal account. I just wanted the name of website to shop from home using paypal. Nothing else. Well i will try to search google again
Basically ebay is the best place for you in india. Other than ebay, here is one website for you: letzearncash.com you can use paypal to pay your bills, booking tickets and even you can recharge your mobile with paypal there!