I recently sold a .in site for $xxx because it's easy to remember and easy to play with if the visitor knows the name of the site but has forgotten the tld. .co.in and .in both outweigh the chances of resulting in SERPS for Indian sub continent.
It's a mixed result for both .in and .co.in domains. While some semi-govt sites or banks have chosen .co.in to operate their core business such as irctc.co.in (Indian Railways) or abnamro.co.in, there are others such as citibank - using .IN In my opinion Top level ccTLD is better than 3rd level ccTLD.
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I think you should go for .in rather than .co.in because .co.in adds complexity to the domain name and is not easy to remember as compared to .in
More often used domain extension .in and after that .co.in .in represent for India .co.in represent for commercial + india
lol co.in stands for company names they exist even before the .in registrations for companies you can see yahoo.co.in , google.co.in are regged before the .in version but now thats not mandatory for co.ins
I am .in; http://vikas-gupta.in I would say .in is better but I think I find .co.in more in vogue. I would suggest to go for .in ________________ My socio personal blog How is Holi celebrated in India/JNU