Transaction fees aren't the only cost. You get killed on the bid/ask spread because the USD/BTC market is very illiquid as compared to say USD/INR. The INR/BTC market is so thin you'd be lucky to get fills at all.
I'd be interested to see someone do a USD -> BTC -> INR -> BTC -> USD and see a) if it's even possible in a reasonable amount of time and b) at what cost.
Edit: here's a link to an Indian "local integration partner" of bitpay http://indiabitcoin.com/. They are buying bitcoins for 82% of what they are selling them for.
I'd be interested to see someone do a USD -> BTC -> INR -> BTC -> USD and see a) if it's even possible in a reasonable amount of time and b) at what cost.
Edit: here's a link to an Indian "local integration partner" of bitpay http://indiabitcoin.com/. They are buying bitcoins for 82% of what they are selling them for.