Unlocked phones from ebay

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hello all , i had a query to ask . many a times one sees unlocked phones on ebay in usa selling for much less than what they cost here. will an unlocked phone from usa work on indian networks? is there any difference between unlocked and no contract phones? thanks in advance .
 
Unlocked - can be used on any supported network (like Vodafone, Airtel etc), is not locked to any particular carrier (like AT&T, Verizon etc.)
No contract - One can use their own number (SIM) without having to take a new contract. These phones may or may not be unlocked
 
You should also check whether the phone supports Indian 3G bands. Some US phones do not support the 2100 Mhz band needed for 3G to work in India.
 
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