IE has lost 20% market share in India (statistics). This inspite of the fact that Microsoft had agreed to free browser choice only for the European countries. It can been seen as a steady rise of the rival browsers.
However, I have witnessed another significant reason. Many people I know have moved to Linux – either when they realized that pirated Windows copies can be dangerous or when they got a chance to buy a Netbook. Some of them also moved when they realized that the new Windows versions were too heavy on their wallets. I personally know at least a couple of companies who have adopted Linux for various reasons – to customize software to a greater degree, better administration and to avoid license headaches. I think that this has contributed to reducing the IE share in the Indian market.
I am sure this would increase further if educational institutions and student communities do the move. Linux and the open source philosophy, in general, are highly suitable for educational institutions as they encourage learning through easy upgrades to latest versions, availability of source code and permission to build over it. I hope to see this happen soon and further reduce IE share in the Indian market.