With international favorites like Facebook, Orkut (yes, it’s back) and MySpace gaining traction in Indian markets, it’ll be really difficult for the “me too” websites with a “follow the leader” mentality to hold out in this space. In a product where the content is 100% user created, a country specific product seems out of place.
Big multinational players are capable of investing vast sums to innovate and provide free services sustained by advertising networks such as Google. Any local company which takes these guys head-on in doomed to fail. Unless they innovate and come up with out-of-the-box solutions by playing to their local strengths which will be difficult for the international giants to pursue, they are bound to fizzle out or “at best” get acquired for local user base (which again is something some of the sites may be praying for).