Is the iPhone factory unlock or software unlock? If it software unlock and you upgraded it to apple official firmware 4.3.3, you have erased the unlocked on the phone and now it locks and therefore, you can't use local sim in India.
Yes and no. If you have saved the shsh blobs using Cydia or TinyUmbrella, you can downgrade. But the baseband is not downgradable, so even if you downgrade the iOS, you can't unlock..
If it's from the UK, maybe you can get it unlocked at the provider of the iPhone.