Hey,
Thanks a lot for the great answers. Helped me clear a lot of stuff up.
Doing an MA in History in India itself and then applying for a Phd (which either be in the UK or US) is a definite option and one that I will consider.
Sadly, my undergrad has no history courses in it (the Indian education system is rather rigid and does not allow us to study outside of our majors).
As for the point that a lot of people have made that it's the method and not knowledge that determines success, yep, that makes a lot of sense to me.
I will, however, as a sort of let's-do-it-anyway option apply to one grad school for the heck of it. I figure I don't have much to lose.