The MS Visual Studio can be procured through dealers in India. Please see this link
https://partner.microsoft.com/India/[
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It is better to go for latest version of Visual Studio. Professional version is good and suitable for most applications. From Visual Studio 2008 onwards, multi targetting was introduced. So the application developed in Visual Studio 2005, which is based on .NET 2 can be directly run in the Visual Studio 2008 and upwards. Hence, there is no issue with the application already developed in 2005.
I think with Visual Studio express edition, the compiled version of developed application can not be distributed.
The list of limitations of Visual Studio Expression Editions is given here and there is the following note
NOTE: it is often said that the Express EULA does not permit commercial development - that is not true
The comparison of different versions of Visual Studio is given here
http://www.microsoft.com/visualstudio/en-us/products/2010-editions/product-comparison[
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The details about express editions is given here
http://www.microsoft.com/visualstudio/en-us/products/2010-editions/express[
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