Hi Shuvc,
1. The Indian Lancer is based on the Evo platform, so it has great balance at high speeds and around corners etc. At around 140km/h, the Baleno starts feeling light and skittish, while the Lancer pretty much stays planted. And no, it's not just the tyres that make a diff, I believe that the entire dynamics of the Lancer makes it a better handling package.
When I drove the Baleno, I had to seriously think twice before cornering at high speeds. The car felt very twitchy and light. No such problems with the Lancer. The car goes exactly where you point it. Also, the Baleno looks plain damn ugly when you compare the two. That's a personal opinion, so Baleno owners please don't hate me.
2. The one major problem I have with my car is the lack of outright power and straightline speed. It's enough for city use, but don't enter any drags (especially against a Baleno) because you'll be badly embarassed (I've SEEN, not experienced
).
3. The gearshift is alright, but here again, don't bother racing because the gears are too tall, and the throw on the gearshift is too wide. I've had major problems trying to downshift quickly - the damn gears just won't slot fast enough!
4. FE is pretty good. I get about 10.5 in city traffic with the AC on, but I don't rev over 3000 except on weekends.
5. The ground clearance is a real bitch. If there are people in the back, prepare to kiss lots of speedbreakers. I guess that's the compromise you make for a low centre of gravity.
In conclusion, I'd say that the Lancer is a damn good city car and highway tourer with awesome handling. You can commute, cruise around, and go for nice long interstate drives, but don't bother racing with it unless you're planning on doing mods. And here too, the 1.5 has a lot of catching up to do before it's even on par with the Baleno's power. And if the Baleno also has mods...well then you're pretty much screwed.
Disclaimer: This is my personal opinion, based on my driving experience.