This is excellent news. I think other OW carriers though will find it hard to compete with Kingfisher's service.
One a one hour flight IT will serve you a full meal in Economy, and they will pick up your baggage from kerbside and porters will check it in for you, for domestic economy.
I'd had the (mis)fortune of travelling on domestic flights operated by other OW carriers and on those flights you'd be lucky if you get a smile from the cabin crew, let alone a meal or porters!
This is also great news for HKG based travellers to India, and terrible news for CX's India operations because CX is already having a hard time competing with IT/9W flights to BOM which offer better service and timings and now there will be even less reason to fly CX.