Philippines

Hi Venkatesh,
You can choose any country, but more important is the university you choose.
Secondly, don't be misled by agents who promote South America as gateway to USA. Even if you are doing your clinical training in USA along with studies in South America, you will have to crack USMLE to get residency in USA. It is extremely difficult.
In Philippines, very few universities have good standards of education. First, you are admitted to pre medical program of 1.5 years after which you get admission to 4 year MD program but to be promoted to MD, you need to clear an entrance exam NMAT with minimum 40%. Most of the universities are private. You can read about the universities here: http://edificeeducation.com/mbbs-in-philippines
Russia is home to some of the best medical universities in Europe. Some universities have over 100 years of expertise in teaching medicine. These universities facilitate English medium of instruction for international students. Russian language is taught to you from basics though your curriculum is in English. Here is a list of best medical universities in Russia: http://edificeeducation.com/mbbs-in-russia
So, if you need affordable education in government universities, Russia is the best bet.
Admissions are open for September intake. You can register here for free admission guidance: http://edificeeducation.com/free-consultancy
For any further questions, you can always write back.
All the best.

Of course, yes. But on one condition.
The Degrees will be recognised only if they are for enrollment of medical practitioners in the countries from where they are obtained because the union government issued a notification under Indian Medical Council Act, 1956. It is basically to recognise the post graduate medical degrees awarded in the countries like:
Canada Australia United Kingdom The United States of America New Zealand
The decision was to overcome the shortage the medical practitioners in India.
Note: The degrees will be recognised on condition that they are recognised for enrollment of medical practitioners in the countries from where they are obtained.
Foreign postgraduate medical degrees used to be recognised in India in the past, but now, the system has changed.
So, since the government has recognised foreign degrees, those holding them like you need not go through the screening test.
Usually, this test is conducted by the MCI. The recognition has come as a boon now to Indian students who went abroad.
As you are willing to acquire a postgraduate degree after you MBBS, you don't need to worry at all. Now, you can come back and practise.
One positive aspect is that those having foreign degrees would be able to practise in India. So, I think you are lucky.
Source: http://entrance-exam.net/forum/study-abroad/foreign-pg-medical-degree-recognized-mci-india-1374109.html#ixzz4eSheEAtv