Sure, but it is not worth the risk. Better to stick with companies who take quality seriously and have a basic bar for quality control irrespective of the price for the product. If I buy a Nokia dumbphone for Rs. 1000 I am assured of a basic level of quality and assured of prompt after sales service. They won't try to throw in fancy features and specs which look inviting on paper by compromising on the essentials.
I don't disagree with the point you're making, but Nokia is no better in my opinion. The 5800 was a highly popular model (check the TE sticky to get an idea) which was plagued with issues on launch. I too, fell for the hype and bought the phone which was touted as the 20k iPhone killer. My handset with shipped the dreaded volume bug where in call volume would gradually drop to inaudible levels.
Like anyone else, I took it to the nearest Nokia Care only to see plenty of other people clutching the same phone in hand, looking like they'd been sent to the principal's office. I waited for a long time and finally handed my handset over, registered my complaint and left. During all of this, there was an elderly man walking about, presumably the manager of the place.
My handset came back with the issue fixed but around 10 days later, my display started acting funny. Again, I wasn't the only one with the problem. When I took it back, the elderly man actually started shouting at me - "You came here only last week no? Why did you buy your handset at some small shop and now when there's a problem you're dumping it on our heads."
Needless to say, that was my last Nokia.
I find that pathetic service often goes hand in hand with large traffic. Any place that deals with a large number of customers on a daily basis tend to treat you rather poorly - Nokia, Micromax, Airtel outlets, State Banks...
I don't think these local brands are the worst idea though, as long as you know what you're getting yourself into. You take a leap of faith yes, but you're not paying a large amount of money either. I mean, some people pay 25k for phones without warranty.
I wouldn't recommend them to a person who requires every day stability, but if you're tech savvy enough to fix a few problems on your own and the 10k won't burn a large hole in your pocket, why not?