thats not alot of money for a studio and it depends what you want to record. Even though most music in India nowadays is nothing more than midi loops and a singer I think that in Manipur there are lots of great rock bands. I guess that for a 5,000 euro budget you would need a solid PC, some program like logic or something. maybe something like this Product: US-1800 | TASCAM
or one of their portable recorders.
A few sm 57's cables. some affordable powered moniters mic cables stands etc. headphones and a decent vocal mic something under 500 euros for the vocal mic. Ive seen several studios in India that are low budget and very sucessfull. Better to buy products that are warrentied and can be serviced locally