The markets that are targeted by Asha and Chinese shanzhai white labels don't have phone subsidies, mostly. China doesn't, I assume India doesn't either.
You're right. Other than iPhone and some BB, I haven't seen anything coming with subsidies. Also, in India, almost of the connections are pre-paid. As per a Nielsen study, 97% of the youth (age 15 to 24) in India are on a pre-paid connection.