erricson s10 mini might be good. then try out mobile reviews from various sites. the nokia n8 is the best smartphone in terms of camera but it is out of your budget. try nokia xpressmusic range like 5233.
You Should Buy Sonyerricson C-902 it has 5.0 megapixel cam. But you can't pin pack you will have to buy second hand. I am using this mobile its cam is Fantastic.
Nokia 6220 Classic Great 5mp Carl Zeiss camera, Xenon flash and lens cover Had it for 2 years not a problem
for good camera i think sony ericsson, its good for multimedia (camera and music). for example sony xperia.
The new Nokia X2 is available in India at price of Rs.4,199.It is the cheapest price 5 megapixel camera mobile phone available from Nokia.