Commercial Electricity is also available at around INR 4.2/kwh ($0.064)
1. Will it be profitable in the long run ?
Probably not. You need to get your electric cost down under 5c/KWH (us) and more likely down to at least 3 to be competative long-term with the "big farms".
4. Will the value of Bitcoins in respect of USD increase in future (say, 5 years down the line)?
Probably, but not certainty.
As per a Bitcoin mining calculator, it states that I shall breakeven in roughly a year.
Did you take difficulty increases into account?
Did you take the reward halfing (in July 2016 most likely) into account?
My electric cost most of the year is 7.5 cents/kwh (US, approximate) and MY calculations show that no current miner is likely to achieve RoI at ANY timeframe due to those factors and current cost per TH on any available miner - and that I'd have to get to somewhere with 5 cent/KWH or less electric to have a reasonable chance of RoI on anything currently available to the public.
At your amount of investment capitol, you MIGHT be able to get a deal with BitFury or Spondoolies for more efficient or lower cost/TH gear, but I can't figure based on information not generally available.