Thats impressively low. Do you know what the name of the Indian company was?
More quotes are coming through. I've had one as high as US$1200. Perhaps this Indian company think I was born yesterday.
Ive had a quote of around US$430 and their portfolio looks the most impressive out of all the companies I've had quotes from so far.
http://www.india-designers.com/websites.html
I've read previous posts higher up about your reasons for getting this done on the cheap, but I still can't help thinking that no matter how cheap it SEEMS, you're wasting your money here.
Their websites are basic and very dated. Aside from the out of date look, they're put together very amateurishly. If you view the source, you'll see lots of td and tr tags, this means the site is built using tables, rather than CSS. If you do a search on tables versus CSS, you'll find thousands of pages on the downsides to that (to me, it's also the first sign of someone who doesn't know what they're doing). There's also no use of things like header tags and the like that would help with SEO, even their title tags (the most basic of SEO features!) are poorly done.
Building a site on the cheap and uploading it somewhere just doesn't work. For a start, without SEO work no-one will ever find it! When we work with clients we visit them, see what they're about, then its an ongoing process to keep the site up to date and continue to modify it to target their customers (and the search engines!). I'm not just looking for business here as you're too far away for my company, I would recommend someone local who you can meet wth.
If you don't want to spend much initially, I'm almost thinking you'd be better getting a domain and hosting, then have a simple holding page built with a logo, very brief introduction to what you do an some contact details. you'd probably find a freelancer who would knock something up for you for next to nothing (make sure it looks professional though!). It would probably be as effective as a site like the ones on that portfolio. Then, if things are going well, look at working with a local company further down the line. Again, don't just go for the cheapest though, you wouldn't need to pay thousands, but you want someone who is geared towards making your website work and is not just going to dump it online, then let it sit there. As has been said previously, a thousand pounds for a professional website isn't a bad price.