Not only stores and street hawkers in India have different prices for the tourists and the locals, but museums and temples in India as well. They have one entry fee for the Indian and another one, which is much higher, for the foreigners. For example, the entry fee of Taj Mahal for Indian tourist is Rs20/head, while for foreigners is Rs750 (Rs250 entry fee + Rs500 toll tax). This is crazy! It’s like 30 times more! Too bad there is no way we could bargain for a cheaper entry fee for Taj Mahal. 😛
FYI, I heard that the Indian government subsidies the visit to monuments for Indian citizens, that’s why they can pay so much less than we do.