Netbooks start at 14k including tax and Laptops start at 18.5k including tax. Let me give a small insight into cheap laptops and netbooks:
Netbook
RAM: 1GB DDR3 or DDR2; only ONE RAM slot mostly and no dual channel even if there are two slots
HDD: 160GB
OS: DOS/Linux or Windows 7 Starter 32bit
CPU: Atom 1.66GHz (most popular today) or 1.6GHz Single Core
GPU: Intel GMA 3150 (most today are THIS one) or GMA 950 (if you're really unlucky to buy this...) or GMA 500
Battery: 3-cell or 6-cell, with 3hrs or 6hrs battery life approx
Size: 10" and 1024x600 resolution usually
Laptop
RAM: 1GB or 2GB (rare at this price) DDR3 1066MHz; can upgrade to 4+4 Dual Channel
HDD: 160GB
OS: DOS/Linux
CPU: Intel Pentium P6100 2GHz, 3M Cache, 2 cores and 2 threads (Arrandale architecture)
GPU: Intel HD Graphics at 500MHz integrated in CPU
Battery: 6-cell, with 1.5 to 2.5 hrs backup
Size: 15.6" and 1366x768 resolution
Its a matter of purpose which you should select. Price to performance wise, you get what you pay for, though Notebooks are more VFM.
If you want to use it as a cheap desktop replacement, or for watching 720p x264 HD rips of movies or for light gaming or for anything that demands performance, you can't take the netbook. But remember, the laptop has a low battery life. And I MEAN low. I've one such cheap laptop from the previous generation (Intel Pentium T4400 Penryn 2.2GHz CPU_ and I can tell you that the battery life is just 100 minutes max. And these things are seriously bulky at 15.6". Nice for movies but BAD for using in Bus. I've serious trouble with my laptop even in the Volvo buses Bangalore's BMTC has.
Netbook is best used as a PDA in its truest form - spend a little more for one with a good build quality and it should last quite a few years if its purpose is to keep you digitally connected on the move. You can use them for office work while traveling, watching 700mb xvid rip movies in buses/trains, casual gaming (flash, GBA/NES emulators, pinball and the like). They are mainly attractive due to their extremely tiny form factor. Really easy to use while travelling and battery does not ditch you half way through a 3-hour movie.
If the device is your one and only PC, a laptop is the only buy you can make. But if you have a powerful desktop at home and need a travelling companion or a gaming laptop and need a secondary laptop then a netbook is the better choice.