Some interesting facts of digital users in India (data from vizisense)
# Percentage of page views on Facebook have increased from 23% in Aug 2010 to 30% in Dec 2010
# Google search page views (as a percent) did not change between Aug 2010 and Dec 2010
# Twitter page views have decreased by half from Aug 2010 to Dec 2010
# Blogspot page views have decreased by 12% from Aug 2010 to Dec 2010
# Total page views (search and non search) has increased by 3% from Aug 2010 to Dec 2010
It is clear that increased activity on facebook is directly correlated to decreased activity on blogging, tweeting, searching etc.
Coming to the main point, twitter activity has delinced quite drastically in India. Although during the same period activity across yahoo, news sites, portals seems to be stable. It becomes imperative to compare twitter and facebook in order to draw a conclusion. Twitter is platform that generates a interest if there are regular interesting updates, in normally circumstances it is possible for celebrities, companies or product tweets. Whereas, on facebook there are host of other activities including games, top news, ability
to share thoughts without restrictions, pics, videos and many other activities. In affect unless there is a strong reason for a person to go to twitter (like following a celebrity or product), he is likely to be at facebook as it provides him with many options. I guess Google has been trying to follow the same.
Going forward twitter will be like news websites/channel where celebrity/companies/products can update/interact with users. The decreased activity in terms of page views is just an affect of initial interest created by twitter which is in the process of stabilization. Moreover, twitter needs to provide more tools for companies that can be used for better interaction with followers.