which is better binoculars or telescope within my budget?

Definitely a telescope. binoculars are useful to watch things that are few kms or mtrs away, not astro bodies

good telescope not less than 10 -11k (minimum)
good binoculars not less than 3-4k

with 1k-1.5k nothing save up more to buy a good binoculars

telescopes stating 400x or 600x for just 2-3k are all fake they are like zebronics 1000 watt psu for 200rs with 85% efficiency
visit this site for more info
Telescope India | Telescopes India | Manufacturers of Telescope-INDIA | Tejraj & Co. | Mumbai Astronomy Telescopes | Amateur Telescopes India | Astronomical Binoculars, Largest Telescope Manufacturer India

telescope

35x Terrestrial Telescope.Rs. 930.
Mini Stand table top.Rs. 435
GENERAL TELESCOPES | 35x Astro-Terrestrial Telescope

SKYVIEW 20x40x80x
[ the compact Achromatic Refractor ]. Rs.3,000. with Mini Stand table top
*www.tejraj.com/skyview.html

thank u all for ur replies.....i think i should wait for now and save few bucks more so that i can buy a quality product..

For Astronomical Observation.. Telescope is the way to go(But take note that good telescopes are insanely high priced). But very good binoculars can do the job better than the ordinary telescope and will come in handy for all purposes(like eves dropping on the chick next door ) I will suggest Zeiss or Nikon binoculars of 10x50 or 15x70. 15x70s are highly recommended for astronomical Observation. But They require Tripod for stability when viewing celestial objects as slight hand movement will cause extreme fluctuation in viewing area.

*www.tejraj.com/Price-List.pdf check this.. there are more cheaper options for you.. thise telescopes would work better than the binoculars..

TELESCOPE GENERAL PURPOSE
The SMALL ACHROMATIC REFRACTOR TELESCOPE
Rs 300 tele-micro pen-scope
Rs 480 20x tourist telescope
Rs 510 30x high power tourist telescope
Rs 3000 Konuspace-4
100x TELESCOPE & ZOOM SPOTTING SCOPE (gift box)
D=50mm/F=600mm Table Top Refractor
Rs 3630 Konuspace-5
120x TELESCOPE & ZOOM SPOTTING SCOPE (gift box)
D=50mm/F=700mm Refractor
Rs 6600 Konuspace-6
D=60mm/F=800mm Altazimuthal Refractor (gift box)
Baader Solar Filter . . . . Rs. 300.
(Bresser Optics Germany)
Rs 6060 114/500 Newtonian with Metal Tripod 32”H and carry bag for OTA

awesome info desai_amogh....thanks a ton. I didn't know that telescopes come this cheap...

If u are interested in Astronomy .. I wud suggest u first learn what telescopes are used for what purpose.. (for example P&S camers dont perform well in low light conditions and SLR are perfact options...) see if those cheaper telescopes are meant for the kind of use u intend them to buy...

Nice info there buddy. Useful stuff.

if you look into some DIY website like instructables.com you can attach a webcam to binocular / telescope and view it directly on your PC.

like this
40$ USB super telescope, easy to make, sees craters on the moon

Also, if u are from Pune, u can visit this place IUCAA to learn building your own telescopes and a lot about Astronomy.

There are some more vendors: Telescope supplier - Astroview

and

Telescope, astronomical, manufacturers - sharpvisionindia

Both of these have an updated price list on the site. so under 1k -1.5k u do have loads of options to explore befor making a decision. search for Astronomy forums or forums specific to telescopes to find out which model under Ur budget will be the best performer.