I'm also confused between LCD TV and Plasma TV. tbh I don't have much knowledge about theme, so can anyone suggest which one should I go for?
Basic difference : LCD is much more energy efficient than Plasma. Plasma TV's are expensive too and will never be popular due to the aforementioned reasons. LCD TV's are the "in" thing today.
Recently ico & LFC_Fan have purchased LG Scarlet 32" LCD for just over 40K. Both are praising the model as if she is their wives
But how come you missed Diwali shopping?
The offers are still on in most places. He may buy fast to catch them. +1 to LG Scarlet. LG is my recommendation as LG manufactures its own panels and hence will always be cheaper at any price range. It has good features too.
Go for an LCD that has atleast 2 HDMI ports. Contrast ratio matters but anything above 15,000:1 is good enough for human eye.
No Dynamic Contrast Ratio is not something that really matters. I didn't even look at it when buying.
Stay clear from sales gimmicks like "HD ready". Buy a panel that is 100% HDTV. If budget permits buy a TV with bigger dimensions because after a while you will realise that 32" is not so big after all

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Yeah, and soon people are going to be buying 55" LED's and 32" will be like a baby. Hehe... No, seriously, 32" is more than enough.
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OP What is the viewing distance going to be?
Samsung is almost 15% costly than LG and Sony's Bravia even more. I hook my LCD with PS3 and an upscaled DVD player (advantange of two HDMI ports

. Images are in 1080p and absolutly crisp. LG panel rocks!!!
Reasons given above for the cost.

Yes, LG Panels are great with the best of image quality as far as I did observe in various showrooms. Yes, 2 HDMI outs are recommended.
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OP You have a DVD player + speakers? If not, then get the LG 32" Scarlet TV and get a decent home theater setup for 10k. The Samsung HTZ220 is nice with HDMI cable provided and also HD upscaling and bluetooth and usb divx playback.
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I am also going for LCD TV, but waiting for the price drop of LED TV.
Your budget is less or you would have went for the LED TV brought by SAMSUNG.
Naaah, man 70k for 32" LED is bullsh1t. Price drop of LED panels are not expected to kick in till next year at least. Let LCD's become as widespread as CRT's and then you will see a price cut. Then OLED TV's will pop in which will be priced insanely at the beginning. For now, LCD's are the best bet.