As an Indian, I would find it offensive if someone wore a kurta or a saree as a Halloween costume. Sheesh! Wear it where it would be appropriate (Indian event or visiting the country). One exception might be cosplaying a famous Indian personage like the politician Nehru or a popular actor like Shah Rukh Khan. But it doesn't really make sense because very few non-Indians would get it.
LW2--I wouldn't expect anyone to shell out 100 bucks just to see me get an award.