Thank you for your inputs.
I am now checking CCAvenue now and reading through their site will do some research about them and possibly signup with them.
Yes, paypal almost supports India. Since ebay has a official presence in india now, they might be fully supporting India soon. Currently they send us a cheque to a maximum of $2500 in one payment, I guess that is the only limitation.
Also....what other payment gateways do you suggest to accept international payments as my domain names selling site would be international also.