I just wanna know if there is any way of buying an locked iphone for 199$ in us and then bring it to india. So that it can be used after unlocking. Is this possible and will the contract will terminate automatically. And if possible let me know the procedure.
Though this is possible, it is ILLEGAL and you will not get any sort of help with it here, or from any other reputable site/company.
Also, no, the contract will not terminate "automatically." Not unless you pay an early cancellation fee, which is usually $40 per month left of the contract, or $400, whichever is more. If you got a phone on a two year contract, and then immediately tried to cancel it, your early cancellation fee would be $960.
Failure to pay said fee could result in legal action being taken against you. In your case, you would be charged with fraud since you would be knowingly committing breach of a legally binding document. If found guilty of a crime committed abroad, you could be brought back to the country in which the crime was committed for sentencing and or imprisonment.