What's the participation of Indians like in gaming competitions at the world level?

Answer 1

Guess the scene is improving. here's an excerpt from an article which will give you an idea.

excerpt
Tangible progress will be marked by the first Indian participation in the Electronic Sports World Cup, which kicks off June 30 in Paris. Earlier this month, 162 regional qualifiers from nine Indian cities came to New Delhi -- including 8-year-old Rohan Karir, a TrackMania prodigy -- to compete for 10 tickets to Paris and a shot at some of the $400,000 ESWC prize money. All told, more than 20,000 Indians competed, making it one the biggest national gaming tournaments ever.

Answer 2

The scene is good but not encouraging as other countries!! Sagar Vaishnav from Mumbai won the Warcraft competition from India and will represent India at the ESWC in France later this year. Also there is Clan ACID who'll be participating in the Counterstrike events.
The popularity of racing games like NFS and Track Mania is not as much as other games though.