Folks,
This is something that I have been wanting to do since I joined this forum but never got around to doing it.
There is a record label called "Magnatune" that has an exclusive online presence at http://magnatune.com/. John Buckman, the founder and owner of magnatune (with whom I have had some personal correspondences in the past while recommending him an artist) started this label for the reasons described here: Why?
This is essentially an open source music movement in the same spirit as Open source software development. You can listen to the music online in 128 kbps mp3 streaming quality and download at the best possible quality (mp3, ogg, wav, etc.). The best part is that you decide the price you want to pay for the album. I have made some purchases from them in the past and paid what my budget allowed me to pay.
They have an Indian classical category in world music with some names that you may have never heard of, yet they play very well.
My recommendations:
The RajDhani Quartet: Hindustani Classical meets Carnatik Music http://magnatune.com/artists/rajdhani
Anup: electro Indian sitar http://magnatune.com/artists/anup [fusion]
Jay Kishor: Indian classical sitar and surbahar http://magnatune.com/artists/jay_kishor[Jay is an excellent Sitar player, also listen to him as part of Rajdhani Quartet]
touchingGrace: psychedelic Sitar experimental ambience http://magnatune.com/artists/touching_grace
They describe Jay Kishore as "Though groomed in the traditional "master-disciple" training known in Indian Classical Music from reknown masters like Mrs. Annapurna Devi, Pandit Brij Bhushan Kabra, and Dr. Raj Bhan Singh Thakursaheb, Jay is constantly attempting to expand the definitions of "Raga" and "Sitar" through his collaborations with legendary guitarists such as Stanley Jordan, and the late Michael Hedges."
If it interests you, also check out their offerings by other composers, such as Hans Christian where new age meets Indian cello, Beth Quist, and Curandero who combines Flamenco guitar with Indian Tabla. I, listen to music from everywhere in the world and this site may make you like Persian Hammer Dulcimer as much as our Santoor.
I think magnatune.com is the future of music, what with people tired of paying 15+ dollars for one CD. I am also quite hopeful that they'd have more artists from Indian classical genre.