I personally think this is a distasteful effort (specifically the use of the HN name for an independent site without permission vs just using the open source code), or at best a naive one, which will sputter along for a while and then die.The discussion so far on "HN India" is extremely sub par as compared to HN, and certainly not worth switching or even joining.
Imo, there isn't enough of a critical mass of India specific issues related to hacking/startups/programming etc sufficient to support a whole new community. Sure there are a few India specific issues but they'll be discussed to death in a few weeks and then the forum will stagnate. Discussion about programming/hacking/startups/other matters of intellectual interest are in general best done in a global context.
This is an unpopular view point amongst certain folks here in India(and I fully expect to be downvoted ;-)), but if they pull it off and create an ultra vibrant community, more power to them. I just don't see it happening. And as long as they are ripping off the HN Name (and brand) I won't even think of joining.