Searching for Android apps
The general opinion everywhere is that the Web marketplace is much better with search results than the marketplace app (it is really puzzling as to why is such the case). And no, the problem is not India specific, it is faced everywhere. The same opinion holds for other stores as well, including Apple's AppStore. The good news is, there are a few companies trying to make it better, namely Chomp and Tapjoy:

Chomp has been pretty successful and has been solving a truly-existing problem, which is evident since Verizon now includes Chomp in its tethered phones.

For more info, see xconomy.com news article discussing the search issues in the mobile market places and apps like Chomp and Tapjoy.