Recently, I went to buy an acoustic guitar in 10k range, and was very disappointed at the stuff the dealers (at least in Delhi) keep. I saw "Squire by fender", "Lyon by washburn", etc. They were all chinese made, and very poorly crafted, not what you would expect from these companies. The back and sides were of wood called nato and catalpa, very hard and the tone not so good. The other shops around had ever worst stuff.
I had gone to Bharat music house in lajpat nagar, and when I commented on this fact, they laughed and told me I would have to especially order american made guitars if I wanted, starting at $1200. But I checked on the net and found that washburn, fender, etc. offer pretty decent guitars for around $250 upwards.
I have read that the best wood for a guitar is "Indian rosewood", coming from brazil and india, and it is ridiculous that while people from US, Europe enjoy playing rosewood guitars with wood from our country, we have to be content with plywood and "nato".
If you consider it, the Rs. 10000 - Rs. 12000 range is quite expensive for us here, and we should expect a high quality product, at least maple or cedar, but look at what we get. Gibson doesn't even have a dealer here while they do in Turkey and China.
What is to be done?
(I finally bought a Hofner (chinese :() from a smaller shop called I think Ragasons. It is jumbo sized cut away with pickup and I paid Rs. 8800 for it.)