So here's an update for all those who have been following this thread and especially Anish thanks for helping me out

So today morning me and my roomie went to the BIG electronics mall here in Shanghai and then checked out the wifi routers. We were told that TP Link ones are cheap. So we checked and picked up this (TP LInk WR340g) FOR 125 RMB (x 7.5 Rs approx). So first tell me, was i robbed or i paid the right price ?
They started with 180 types and then afterd doing R&D in around 6 shops we felt that no one was coming below 125 RMB

, so took it.
Came home, the china telecom guy was yet to come so just to check the connection between lappy and router connected the same and whoa it worked. It was totally new experience for me to use wifi
After that when i was searching for the list of networks, i saw that mine is unsecured and did not know how to secure
So searched the net and found that way of that WPA PSK thing. But now the biggest problem came. I keyed in 192.168.1.1 for router and whoa everything in Chinese

I could not find the language option (and later realized there werent any). The china telecom guy also tried and said (using sign language) that it is not possible to set language to English.
So first googled for tips to change language for this router and voila i got a solution of firmware upgrade. Downloaded a 1.5 Mb file and they had given on how to upgrade fw for these china purchased routers. They had said that after FW upgrade the language wud change and yes i did those steps and it worked.
Now i setup the WPA FSK thing and then secured my n/w
(Lagta hai wifi ke baare mein jaldi seekh jaaonga

)
Bas then what...connected and got bad speeds..speed tests coming to less than 200 kbps. I was like WTF
The telecom wala guy told some stupid reason and told that monday se it will be fine. Using that wifi only now to post this message
Offtopic: I also bought a webcam (Logitech QuickCam E 1100) for 90 RMB. Correct price or more ??