Just noticed that raaga.com, a website that has allowed users to listen to new tamil/hindi/telugu songs for quite a few years now for free, is also selling these songs... what was a free ad supported streaming service is now offering individual songs for a legal copyrighted download at approx Rs.12 a song ($0.99 in the US). The price may vary depending on how old or new the songs are. They add a Rs.10 processing fee for every transaction but still you end up paying slightly less than what you would pay for a whole CD if you were buy one off the shelf. But then, here you can listen and choose which songs you want to download. Nothing better than that.
This is very welcome and this was pending for along time for indian music. The only disappointing factor about this is the site uses windows DRM, which means I cant download the songs directly into my ipod. There is a workaround though, after one acquires the windows DRM license to burn the songs on to a CD and then add the song to your iPod. Pretty painful! :(. Still, something is better than nothing.
This service can only become more popular as time goes by... they certainly have a good business model in my opinion.