Hi Arun,
You lost current job and potential job, so it's not the end of the world! Job market seems to be really good in India, and I am sure you will get a job soon. The important thing is not to loose hope, take it as an experience and there are thousands of IT companies in India. Somewhere, somebody is waiting for you to give you offer letter, you need to find them. Thats it
Also, do not worry about having less experience. You are close to 2 years (1.7 years) so there are many companies ready to provide opportunities. Keep trying, keep updating your skill set.
Probably you can try for job in any location across in India like Hyderabad, Bangalore, New Delhi, Chennai and places like Mumbai, Ahmedabad etc.
Good luck.
Sai Surya, SCJP 5.0, SCWCD 5.0, IBM 833 834
http://sai-surya-talk.blogspot.com, I believe in Murphy's law.