The iPhone X is already in India, no doubt. The grey market is always profitable, at least before launch day in that particular country. Where there's money to be made there's a way. You won't be able to buy it in standard retailers, though.
That said, the rumor mill is always interesting. I don't doubt that the OP heard the number 400 or 4000, but people in the distribution chain make stuff up all the time as an excuse for no stock. After all, how would you reality check that number?
From a distribution point of view it's easier to make someone up the food chain look stupid or incompetent, especially if you didn't get an allocation.
Original statement: "Oh, they only gave India 400 phones, you won't find it anywhere."
Translation: "Nobody has an iPhone X to sell you because Apple doesn't care about India."
Real translation: "I don't do enough business to get an iPhone X allocation."