If I'm reading it correctly, that risk-free return rate is only available to resident Indians. In addition, even if international investors would be able to access it they'd be adding currency risk to the equation.
Yes, and Yes. I quoted the risk-free rate to give an idea about the economy and its risk-level. Equity market here can be expected to give decent returns (~15%). I'm not sure about the citizenship requirements but the equity markets should be quite open.
http://new.valueresearchonline.com/funds/default.asp