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Yours truly disagrees with said knowledgable dealers. It depends on the speaker.
I also have a narrow space, though not as bad as yours. Acoustic treatments at first reflection and every two feet there after help the walls disappear. My VR33's are 36" from rear and 7ft apart and have a huge sound stage with sound from all over the front of the room.
The latter is generally undesirable, but early reflections can be reduced (and the detrimental effects of those that remain minimized) by choosing speakers that have good radiation pattern control.
Note that the Gedlee brand of speakers meet the design problems to a T. They are designed for controlled directivity ("choosing speakers that have good radiation pattern control"), have limited bass response so won't be affected as much by boundary re-enforcement, the Abbey model (the most popular model) costs exactly the $4,000 mentioned as the budget, and I'm pretty sure Earl will ship to India. The rub may be finding a pair to audition there, and of course the long wait for Earl to custom build you set of speakers. There is a thread on this circle devoted to the speaker brand, I have not heard the speaker myself so cannot comment on sound quality, but the posters on that thread sure love 'em.
The Salk transmission line speakers can be place close to the walls. Since they're made to order, you can even have the openings made in the front. There's a Salk thread here on AC.http://www.salksound.com/veracity%20ht1-tl%20-%20home.htmThey're beautiful speakers that are constantly praised not only for the sound but their value.