India is a great place, you wont have any issues with language and from the looks of things on HN in places like Delhi there are small hacker communities that you can get involved in if you're looking to meet those kinds of people.

You can rent a 2 bed appt for around £400 a month in a good area - perhaps this is more than you were planning on but I think it is somewhere that you wouldn't have to fight with. I found China to be an incredible place but if I am perfectly honest it is not an easy place to be - fun and eye opening but can be an absolute nightmare if you don't speak the local dialect - even if you have some very helpful local friends. That said Shanghai has a large expat community where you will be able to very easily get involved in (http://www.shanghaiexpat.com/)

BTW - I am personally going to be in Delhi a lot as I am setting up a business there and I spent a lot of time in Shanghai in the past.