If you are an 'Resident' Indian then you have two options here:
1. Paypal
2. Wire Transfer
Third option is Automated Clearing House (ACH) but sadly it is not available in India.
Paypal is good for smaller payments or if payments are online donations (or something similar) ,where payee can change his decision if it is not convinient for him to pay.
For payments greater than 250 USDs, Wire transfer is better than Paypal. This is because Wire transfer will take fixed 10 USD charge wheras Paypal will take 4 % of amount. (Note that on Wire transfer as well as Paypal there are extra charges for Currency conversion).
Also Paypal has many other charges like Withdrawal etc. etc. Also They feel they are doing mercy on Indians by operating here in India. So they switch off some services sometimes.
Refer to this link for additional details
http://www.topcoder.com/wiki/display/tc/Payment+Methods
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